The 2008 P2 Energy Solutions International Conference Sharm El Sheikh, Egypt November 11-12th

Who We Are  Newfield is growing. We are an independent oil and gas company with a balanced program of exploration, production and acquisitions. We are traded on the New York Stock Exchange under the ticker “NFX”. THE FACTS Proved Reserves:2.5 Tcfe, 75% natural gas Enterprise Value:~$9.7 billion Office Locations:Houston, Texas (Headquarters), Tulsa, Oklahoma; Denver, Colorado; Kuala Lumpur, Malaysia; Beijing, China Areas of Operation:Onshore Gulf Coast, Mid-Continent, Rocky Mountains Gulf of Mexico, offshore Malaysia and China Employees:~1,000

Our Assets Our Assets M A L A Y S I A C H I N A INTERNATIONAL AREAS T E X A S LOUISIANA N E W M E X I C O O K L A H O M A U T A H C O L O R A D O M O N T A N A W Y O M I N G ROCKY MOUNTAINS MID-CONTINENT SOUTH TEXAS VAL VERDE BASIN EAST TEXAS GULF OF MEXICO N O R T H D A K O T A S O U T H D A K O T A  WE HAVE A DIVERSIFIED ASSET BASE

 NFX PROVED RESERVES What We Have Done * NFX Sold Nearly 400 Bcfe in 2007

190 Bcfe Bcfe 2007 PRO FORMA2008e PRODUCTION  PRODUCTION What We Have Done Int’l 10% Mid-Cont. 33% GOM 8% Rockies 18% Onshore Gulf Coast 31% Int’l 4% Mid-Cont. 45% GOM 4% Rockies 28% Onshore Gulf Coast 19% >22% Growth!

The Challenge DataInformationDecisions Value Value

Data… Systems … Data … Systems Silos of Data Operations Daily Drilling reports Daily Production Work Over Reports Failure Analysis Safety Systems Artificial lift Analysis Engineering Reserves Well Test Analysis Reservoir Simulation Nodal Analysis Economic Evaluation Well Test Analysis Geoscience Seismic Data Well logs Geo-Statistics Velocity Surveys Well locations Directional Surveys Financial LOE/LOS Budgeting General Ledger Contracts P&L Statements Accounts Payable

Limited Data Integration  End Users must go through a series of systems to integrate data –Integration is Typically by Department –Time Consuming –Difficult OperationsGeological EngineeringFinancial

Fully Integrated Data Better Information Better Decisions Better Value Must be easy to Access

How did we accomplished this at Newfield  Developed and communicated a simple to understand Model that described how we would run and implement our ERP  Designed IT Goals which promote the use of integrated data within IT and the company  Leveraged the P2ES Hierarchy  Added industry standard keys –UWI –Location information

Newfield ERP Model … Prod DM Prod Reporting L-1 L-2 L-0: Core NFX Financial database (Transactional) L-1: Datamart reporting tables (Read Only) L-2: End User Interface Layer (multiple interfaces) Land DM AFE DM Hierarchy Fin DM LOE DM GIS System Land Mapping LOE Reporting AFE System Reserve Reporting Budget System ECM System OLAP Oracle P2ES L-0

Senior IT Goals “Bench Strength” Exploit current systems. “Evergreen” Audit and design processes to continually maintain current data. Focus on retrieving value from existing systems. ECM GIS Production Evolve today for tomorrow Training Build Knowledge

Keys are the Key 10 Business Unit 20 Team 30 Area95 Departments 40 Field41 Prospect 56 Lease50 Well54 Land Lease 60 Completion64 Land Tract 74 Land Depth P2ES Hierarchy

Keys are the Keys  P2ES Hierarchy was used to relate all internal data –Internally developed systems –Purchased 3 rd party systems  Industry Standard Keys –UWI Used to access Public and industry information –Evergreen process to assure accuracy –Latitude/Longitude Used for Spatial representation

Results  The Rules worked –A brief look at 3 systems –Turning Data into Value –Daily Production System –Corporate GIS –ECM (Enterprise Content Management)

Production

GIS – Well Data Newfield Corporate Web GIS Geographical ERP Menu

GIS – Land Data

ECM Predefined Folder Taxonomy P2ES Hierarchy Inherited Metadata from ERP Google Style File Search

What we Learned  Technology was not the problem –Used standard off the shelf technology –Oracle Materialized Views –ESRI Suite – Microsoft.Net  Data Keys were the Key –Leveraged the P2Es Hierarchy –Used industry standard keys  Education and pushing the IT staff to work outside of their comfort zone was essential  Once Data integration is understood it is contagious  Change Management is extremely important  Systems must not be complicated

The Challenge DataInformationDecisions Value Value

Questions Thank you for your time and I look forward to answering your questions.