Tuesday, January 10, 2012

Newfield signs Uinta Basin supply agreement

Tuesday, January 10, 2012

Newfield Exploration Company signed a crude oil supply agreement with HollyFrontier Corporation to provide 20,000 barrels per day of supply capacity at HollyFrontier's Woods Cross, Utah, refinery.

"We are planning to significantly increase our drilling activities in the Uinta Basin – both in our proven shallow oil developments and in new and deeper oil horizons," said Lee K. Boothby, Newfield's Chairman, President and CEO.

"This new agreement with HollyFrontier helps ensure that our oil growth will be matched by capacity expansions in the Uinta Basin. We are growing an important source of domestic oil volumes and both Newfield and HollyFrontier will benefit throughout the next decade."

The new agreement spans a 10-year period with commitments commencing in 2014. This is the second of two recent agreements by Newfield to secure approximately 40,000 BOPD of capacity for the Company's planned oil growth in the Uinta Basin. The oil price differential associated with this agreement is not materially different than Newfield's current supply contracts in the basin.

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