Newfield Exploration Company - Appalachia Basin

In mid-2009, we signed a joint exploration agreement with Hess Corporation covering up to 140,000 gross acres in the Marcellus Shale play, primarily in Wayne County, Pennsylvania. We are the operator of this venture with a 50% working interest. At year-end 2009, we had jointly leased about 35,000 net acres. This marked our entry into the Marcellus—one of the nation’s largest resource plays and economically advantaged due to its close proximity to the gas markets of the Northeast. We commenced drilling our first geologic test well in mid-2010.