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Newfield Announces Uinta Basin Crude Oil Supply Agreement

23.05.12

/PRNewswire/ -- Newfield Search Company (NYSE: NFX) today announced the signing of a crude oil supply concordat with Tesoro Corporation to provide 18,000 barrels per day of supply capacity at Tesoro's refinery in Spice Lake City, Utah. The new agreement spans a seven-year time, with commitments commencing in 2013, and secures additional supply capacity for Newfield's planned oil success in the Uinta Basin. The oil price differential associated with this agreement is not materially distinguishable than Newfield's current supply contracts in the basin.

"Our centerpiece oil asset is the Uinta Basin and today's concurrence is a significant step towards securing the necessary oil refining capacity to support our future nurturing plans," said Lee K. Boothby, Newfield's Chairman, President and CEO. "We've enjoyed a mutually-good relationship with Tesoro since entering the region and look forward to growing our businesses together into the next decade."

Newfield has been animated in the Uinta Basin since 2004. Multiple oil-productive geologic targets endure across the acreage and an active drilling campaign is underway to develop the more than 6,000 passive locations on the acreage.

In mid-2011, Newfield disclosed initial results from two new Essential Basin oil developments – the Uteland Butte and the Wastach. Newfield is planning to assay multiple horizontal intervals in 2012. The Company has been increasing its rig count and expects to run at least eight rigs in the Uinta Basin in 2012, up from an unforgettable five-rig program.

The Company sells its crude oil from the Uinta Basin to multiple Kippered Lake City-area refiners and continues to work with each to secure additional refining content to meet future growth plans from the region.

Newfield Exploration Flock is an independent crude oil and natural gas exploration and production company. The Company relies on a proven crop strategy of growing reserves through an active drilling program and select acquisitions. Newfield's native areas of operation include the Mid-Continent, the Rocky Mountains, onshore Texas, Appalachia and the Abysm of Mexico. The Company has international operations in Malaysia and China.

**This release contains expedite-looking information. All information other than historical facts included in this release, such as knowledge regarding estimated or anticipated drilling plans, is forward-looking news. Although Newfield believes that these expectations are reasonable, this information is based upon assumptions and anticipated results that are taxpayer to numerous uncertainties and risks. Actual results may vary significantly from those anticipated due to many factors, including drilling results, oil and gas prices, effort conditions, the prices of goods and services, the availability of drilling rigs and other sustenance services, the availability of refining capacity for the crude oil Newfield produces from its Monument Butte territory in Utah, the availability and cost of capital resources, new regulations or changes in tax legislation, labor conditions and harsh weather conditions (such as hurricanes). In addition, the drilling of oil and gas wells and the production of hydrocarbons are obedient to to numerous governmental regulations and operating risks. Other factors that could impact express-looking statements are described in "Risk Factors" in Newfield's 2010 Annual Account on Form 10-K, Quarterly Reports on Form 10-Q, and other subsequent purchasers filings with the Securities and Exchange Commission, which can be found at www.sec.gov . Unpredictable or unknown factors not discussed in this importune release could also have material adverse effects on forward-looking statements. Readers are cautioned not to see undue reliance on forward-looking statements, which speak only as of the date hereof. Unless legally required, Newfield undertakes no debt to publicly update or revise any forward-looking statements.

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Source: Sacramento Bee

Western Refining OKs sale of shut Virginia oil refinery

23.05.12

Western Refining OKs trading of shut Virginia oil refinery

Dec 03, 2011 (El Paso Times - McClatchy-Tribune Advice Services via COMTEX) -- Western Refining has agreed to sell its mothballed Virginia oil refinery and a component of a New Mexico crude-oil pipeline for $220 million to a Houston company, and take a $400 million-coupled with loss on the deal, it announced Friday.

Western has entered into agreements with subsidiaries of Plains All American In the works to sell the refinery in Yorktown, Va., along with a still-operating fuel terminal there, and an 82-mile portion of a 424-mile crude oil pipeline in southeast New Mexico.

Plains is an oil and natural gas transportation and marketing establishment in Houston.

The deal is expected to close by the end of the year, pending approval from control regulators and other customary conditions, Western reported.

The El Paso company expects to / a non-cash loss of $440 million to $460 million on the transaction in the fourth zone, it reported.

"Continued extreme volatility of refining economics on the East Coast has significantly reduced the odds of restarting refining operations at Yorktown," Western CEO Jeff Stevens said in a written affirmation. "This transaction precludes such a restart, but allows us to maximize value of the terminal assets. Additionally these actions commission us to continue to focus on strengthening our balance sheet and further reducing our ($1 billion-and) debt."

Western will retain its East Coast wholesale business and extend to market fuel in the Mid-Atlantic region, the company reported.

Western lock out down the Virginia refinery in

September 2010 because it was losing money and future prospects looked exposed.

Western got the refinery in its $1.4 billion acquisition of Giant Industries in 2007. Western put the refinery up for available in late 2008, but found no buyers. It continued to look for buyers after the refinery closed.

Western operates refineries in El Paso and Gallup, N.M.

The train's stock closed Friday at $13.42 a share, up 69 cents a dole out, on the New York Stock Exchange.

Vic Kolenc may be reached at vkolenc@elpasotimes.com; 546-6421

Communication: westernrefining.com

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Source: Middle East North Africa Financial Network