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MALAYSIA - Newfield Exploration Company announced a second pinnacle reef
natural gas discovery offshore Sarawak Malaysia with gas initially in place
estimated at 1.5-3.0 Tcf, the largest conventional discovery in the
company's 25-year history. The B-14 well on Block SK 310 encountered 1,800
feet of gross column and 1,585 feet of net natural gas pay in the main
carbonate objective. A drill stem test confirmed commerciality.

The B-14 discovery is 50 miles offshore Sarawak in 250 feet of water, 3
miles from Newfield's first pinnacle reef gas discovery, B-15, also located
on Block SK 310; the two discoveries will be developed together. Newfield
operates Block SK 310 with a 30% interest, with Mitsubishi Corporation and
Petronas having 30% and 40% interests, respectively. Newfield said it has
identified additional prospects on the contract area with multiple Tcf of
gas resource potential and has committed to drill one remaining exploration
well (B-17 prospect) on Block SK 310.

Offshore Malaysia is one of the international operations Newfield has
announced plans to sell so that it can focus on liquids-rich operations in
North America; the other international operation is offshore China. In an
update Newfield said it has hired Goldman, Sachs & Co. to lead the process.
Newfield said actions it took on its international businesses at year-end
2012 now allow it to move cash from them to the United States without
having to pay significant US cash taxes. The company owns 3.3 million net
acres offshore Malaysia and 290,000 net acres offshore China.

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