In 2007, Newfield Exploration grew through a $575 million Rocky Mountain acquisition that added 200 Bcfe of proved reserves and exposure to new basins. The acquisition expands our base of operations and significantly enlarges our Rocky Mountain Region, headquartered in Denver, Colo. These assets provide a balance of natural gas and oil production and an entry into large developments in these areas during 2008.

Our 2007 acquisition provided new opportunities in the Green River and Williston Basins. We have active development drilling programs underway in the Pinedale and Jonah Fields. In the Williston, we will drill up to 10 exploration wells.

We established operations here through a 2004 acquisition of a private company. This company’s largest asset was the 100,000-acre Monument Butte oil field of the Uinta Basin of Northeast Utah.

Monument Butte continues to be a centerpiece of our Rocky Mountain operations. Our program here consists of drilling shallow, lower risk wells and the installation of new field infrastructure. At year end 2007, the field had more than 1,100 producing wells. We own an interest in more than 100,000 acres in Monument Butte and have thousands of remaining infill drilling locations. Most of our drilling since the field’s acquisition in 2004 has been on 40-acre spacing. A successful 20-acre infill drilling pilot program was initiated in 2006. Over the last two years, we have drilled more than 50 wells on 20-acre spacing with initial production rates exceeding expectations. We plan to drill 200 wells in Monument Butte in 2008.

In 2006, we signed an alliance with the Northern Ute Tribe allowing us to drill on 47,000 gross acres north and adjacent to Monument Butte. By mid-February 2008, we had drilled 16 successful wells on this acreage. A rig is dedicated to this area throughout most of the year.

At year-end 2007, we owned an interest in 1.2 million gross acres, approximately 1,800 gross producing wells and 445 Monument Butte water injection wells. Our assets in the Rockies are nearly 70% oil and have long lived production.