Newfield Exploration Company declared a $1.6 billion capital investment program for 2008. More than 80% of the 2008 budget is allocated to development activities.

The 2008 capital program, detailed below, will be substantially funded through cash flow and cash on hand. Following the sale of $1.8 billion in assets in 2007, Newfield exited the year with approximately $370 million in cash. Approximately 75% of Newfield's 2008 natural gas production is hedged at a NYMEX floor price of approximately $8 per MMBtu. Newfield's debt-to-book capitalization ratio at year-end 2007 was approximately 23% and the Company's $1.25 billion revolver is undrawn.

"Our '08 budget will deliver organic production growth of 13-21%," said Newfield Chairman, President and CEO David A. Trice. "We expect to produce 215 - 230 Bcfe in '08, compared to approximately 190 Bcfe in 2007, adjusted for our '07 asset sales and acquisitions. Our growth is largely coming from growing onshore resource plays and new oil developments offshore Malaysia. Because of the quality of our asset portfolio, we have visible production and reserve growth for the next several years."

The Mid-Continent region is now Newfield's largest division in terms of proved reserves -- representing 1.1 Tcfe at year-end 2007, or about 45% of the Company's proved reserves. Planned investments in the region approximate 40% of Newfield's total 2008 budget, or $620 million. The largest portion of spending will be in the Woodford Shale, located in southeastern Oklahoma's Arkoma Basin.

Trice said, "We plan to invest approximately $460 million in the Woodford Shale. We expect to drill about 100 operated horizontal wells this year and participate in another 60-70 outside operated wells. About 50% of our operated wells will be drilled with lateral lengths greater than 3,000', over 50% will be drilled from multi-well pads and 90% of the wells will be drilled with the benefit of 3-D seismic data. With this level of activity, our gross operated Woodford Shale production is expected to exit 2008 at approximately 250 MMcfe/d, an increase of 50% over the 2007 exit rate of 165 MMcfe/d."

Now in the early stages of the development phase, Newfield continues to be encouraged with the results of its extended lateral wells in the Woodford. To date, the Company has drilled 14 wells with lateral lengths greater than 3,000'. The 10 most recent extended lateral completions were drilled and completed for an average of $7.0 million gross and are expected to have an average EUR of at least 4.5 Bcfe gross. The net revenue interest averages about 81%.