GOM Outlook Brighter as Noble Plans 2012 GOM Plans

- GOM Outlook Brighter as Noble Plans 2012 GOM Plans

Thursday, September 08, 2011
Rigzone Staff
by Karen Boman

Noble Energy sees a brighter outlook for the Gulf of Mexico from a year ago, Noble Energy Chairman and CEO Charles D. Davidson said at the Barclays Capital 2011 CEO Energy Conference earlier this week.

While the pace of Gulf of Mexico permitting is slower than that prior to the drilling moratorium following the Macondo oil spill, the pace is more predictable and comfortable as Noble moves forward with its 2012 drilling plans for the Gulf, Davidson said.

The company was the first to receive a deepwater permit after the moratorium's end for its Santiago prospect on Mississippi Canyon Block 519 in 6,500 feet of water; the company announced in May that it had encountered 60 feet of oil pay in a high-quality Miocene reservoir at Santiago. The company is now drilling an updip sidetrack at its Deep Blue discovery in approximately 4,700 feet of water – with drilling results expected in a few weeks -- and will next appraise the Gunflint discovery on Mississippi Canyon Block 948.

Noble had drilled a downdip discovery at Deep Blue, but work was halted due to the moratorium, Davidson said. The company originally encountered 32 feet of net pay in the well; the updip sidetrack is targeting 90 to 200 million BOE gross unrisked, with the chance of success increased from 30 percent to 50 percent. Noble is using Ensco semisubmersible Ensco 8501 for its drilling program in the Gulf.

The company anticipates production from its South Raton discovery to come online late this year and production from its Galapagos project to begin in early 2012, Davidson said. As part of the Galapagos project, Santiago and the Santa Cruz and Isabela discoveries on Mississippi Canyon blocks 563 and 562 will be tied back subsea to the Na Kika production platform. Noble's net production at Galapagos will be over 10,000 b/d of oil.

Noble estimates total gross resources discovered in the Galapagos project, including Santiago, to be 130 million barrels BOE, approximately 75 percent of which is oil, and sees multiple low-risk follow-on opportunities of 65 million BOE gross mean potential. Work is progressing on the topsides and subsea loop system for the project.

Noble's current U.S. Gulf portfolio includes 102 lease blocks covering approximately 400,000 net acres and around 40 prospects and 1.9 billion BOE net of net unrisked resources.

Oil & Gas Post

Promote Your Page Too
LINK

Noble to Drill Cyprus A Prospect in 4Q

- Noble to Drill Cyprus A Prospect in 4Q

Thursday, September 08, 2011
Rigzone Staff
by Karen Boman

Noble Energy will relocate one of three deepwater rigs it is operating in the eastern Mediterranean Sea to drill the Cyprus A prospect during this year's fourth quarter, said Noble Chairman and CEO Charles D. Davidson at the Barclays Capital 2011 CEO Energy Conference earlier this week.

Noble said its prospect offshore Cyprus is analogous to the structures it has drilled offshore Israel, and anticipates that prospects offshore Cyprus also will contain gas. Drilling offshore Cyprus is still risky, but they basically are the same system, said Davidson.

"The prospect is an important data point, could change the dynamics further on how gas is marketed in the eastern Mediterranean Sea," Davidson said. "In our view, they have some demand for natural gas, and the scale of the projects in Cyprus will far exceed demand there."

Noble and the Cyprus government signed a production sharing contract to launch exploration activities in the 324,000-hectar economic zone southeast of the island.

According to media reports, tensions have mounted between Cyprus and Turkey over the island nation's plans to begin oil and gas exploration in the eastern Mediterranean Sea. Greek Cypriots, who control Cyprus' internationally recognized government, and Turkish Cypriots are at odds over how revenue from oil and gas production will be shared. Turkey, which backs the Turkish Cypriots, said it would take action if exploration begins before the dispute can be resolved.

Noble operates approximately three million gross acres in the eastern Mediterranean, where is recently acquired additional 3D seismic data and has identified multiple prospects and leads.

The Tamar and Leviathan discoveries offshore Israel, which include 25 Tcf of gross mean resources, are the largest global deepwater gas discoveries made in the past decade. "With the discovery of Tamar, Israel became energy independent in terms of gas," said Davidson. "The discovery of Leviathan has turned Israel into a potential energy exporter."

The company is on track to commission the Tamar production facility in late 2012, with production set to begin in 2013. A rig is on location drilling development wells, and construction of the production platform is underway. The initial development phase calls for five subsea completions with 200 MMcfe/d to 250 MMcf/d per well, and process capacity expanded to 1 Bcf/d at existing onshore facility. Mari-B infrastructure will be utilized as part of this development phase. The Tamar discovery has a resource estimate of 8.4 Tcf.

Noble also is moving ahead with the Noa development, which includes a two-well tieback to the Mari-B facility. First production is expected in the second half of 2012, and will supplement Mari-B deliverability by 100 MMcf/d. Mari-B is nearing full operational reliability, with the Mari-B compression project finalized and second quarter demand up 40 percent from 2010.

"Our current production [in Israel] is extremely strong, with high demand in Israel for gas, with a very strong draw for supplies from Mari-B," Davidson said

Noble expects results in this year's third quarter from its appraisal work to further define the Leviathan resource, which is estimated to hold gross gas resources of 16 Tcf. The company will return to assess deeper stratigraphic sections of Leviathan and is evaluating development scenarios for the discovery, including domestic and export options.

Oil & Gas Post

Promote Your Page Too
LINK

Noble to Build 4th High-Spec Newbuild This Year

- Noble to Build 4th High-Spec Newbuild This Year

Thursday, September 01, 2011
Noble Corp.

Noble announced that a subsidiary has exercised its option with Hyundai Heavy Industries Co. Ltd. ("HHI") for the construction of an additional ultra-deepwater drillship, the fourth such drillship to be ordered this year subject to the parties executing an agreed form of construction contract, which is expected to occur within the next several weeks. The additional ultra-deepwater drillship, to be named at a later date, will be constructed on a fixed price basis at HHI's shipyard in Ulsan, Korea, with expected delivery from the shipyard during the second half of 2014. Following shipyard delivery, the unit is expected to undergo the customary 90-120 day period for mobilization and acceptance prior to being ready to commence a contract. The rig is uncontracted at this time.

The delivered cost of the new drillship is expected to be $630 million and includes the turnkey construction contract, Company furnished equipment, project management and spares, but excludes capitalized interest. The construction contract contains favorable payment terms that incentivize on-time delivery.

"We continue to see an increase in deepwater demand, both near and longer-term," said David W. Williams, Chairman, President and Chief Executive Officer, Noble Corporation. "This view is bolstered not only by geologic successes in the traditional regions offshore the U.S. Gulf of Mexico and Brazil, but also by emerging regions offshore West Africa, Indonesia, the Black Sea, India and eastern Africa. With the addition of this fourth HHI newbuild drillship, by 2014 Noble will have one of the newest, most versatile and technologically advanced floater fleets in the industry with a total of 28 units, 16 of which will be dynamically positioned."

The new drillship announced Wednesday is based on a Hyundai Gusto P10000 hull design and is designed for operations in waters of up to 12,000 feet, but will be delivered fully equipped to operate in up to 10,000 feet of water. The unit will be equipped with DP-3 station keeping, the ability to handle two complete BOP systems, and multiple parallel activity features that improve well construction and overall project efficiencies, including a heave compensated construction crane to facilitate deployment of subsea production equipment. The drillship will also have accommodations for up to 210 personnel, in addition to a number of other operational enhancements beyond the shipyard's base specifications.

Oil & Gas Post

Promote Your Page Too
LINK

Noble Energy, Delek, Ratio Start Drilling Dolphin 1

- Noble Energy, Delek, Ratio Start Drilling Dolphin 1

Tuesday, August 30, 2011
Knight Ridder/Tribune Business News
by Yael Gruntman, Globes, Tel Aviv, Israel

The Sedco Express rig on Monday began initial exploratory drilling of Dolphin 1 Exploratory Prospect, located in the Hanna license, near Leviathan. Dolphin 1 drilling will take place 100 km west of Haifa, and the purpose of the drilling is to discern if there is natural gas in Dolphin 1. Netherland, Sewell & Associates, Inc. (NSAI) best estimate of the gross natural gas reserves at Dolphin 1 is 550.5 billion cubic feet (BCF), with a geologic probability of success of 73 percent.

The drilling is based on the report by NSAI. Well operator, Noble Energy Inc. (NYSE: NBL), owns 39.66 percent of the license, Delek Group Ltd. (TASE: DLEKG) and Avner Oil and Gas LP (TASE: AVNR.L), each own 22.67 percent, and Ratio Oil Exploration (1992) LP (TASE:RATI.L) owns 15 percent.

The decision to drill is partly based on NSAI's prospective resources report. The resources report also says that if there is a gas discovery, based on previous experience in developing similar fields, best estimate has a reasonable chance of being commercially viable.

The drilling will be implemented in two phases. The first phase, is based on Noble Energy's recommendation to take advantage of the time needed for periodic treatment of the rig's blowout preventer (BOP) system. The rig is currently drilling the initial well at Tamar. The first phase will only drill to a depth of 2,560 meters, and will not reach the target strata. Casing pipes will be installed during the first phase, which will strengthen the borehole with cement.

The well's second phase will be drilled later, apparently using the same rig. The two phases are expected to last two months, with the first phase lasting only two weeks. The total budget of both phases, not including production test costs, is $51 million, $8 of which is for the first phase. The final drilling depth is expected to reach 6,000 meters, including 1,560 meters of water, to the target strata 1,440 meters.

Dolphin 1 is one of the 3 dolphin prospects in the Hanna license. According to the NSAI prospective resources report, Dolphin 1 has the largest potential for gas, and for now is the only prospect that has been chosen for exploratory drilling.

(c)2011 the Globes (Tel Aviv, Israel). Distributed by MCT Information Services.

Oil & Gas Post

Promote Your Page Too
LINK

GL Noble Denton Adds Member to Management Team

- GL Noble Denton Adds Member to Management Team

Monday, August 22, 2011
GL Noble Denton

GL Noble Denton has appointed Peter Russell-Smith to its Management Team as Executive Vice President for Business Development, General Manager.

A qualified engineer and certified management accountant, Peter brings considerable energy industry and business consultancy experience to GL Noble Denton, where he will play a lead role in developing the company's product and service offerings, business development activity and management systems during a period of significant growth.

Peter joins GL Noble Denton from global engineering software provider Intergraph, where he was Senior Vice President for the Asia Pacific region. He has also held international leadership positions at Hewlett Packard and PricewaterhouseCoopers, where he fostered successful business expansion in the divisions for which he was responsible.

Commenting on Peter's appointment, GL Executive Board Member Pekka Paasivaara said, "We are delighted to welcome Peter to the GL Noble Denton Management Team. He has a strong track record in managing business growth, and will make a significant contribution to expanding the company's global operations and client base.

"GL Noble Denton continues to experience exceptional demand for its services, particularly from our growing portfolio of clients in Asia,
Australia, West Africa and the Middle East, where the sector is looking to develop complex oil and gas infrastructures quickly to address rapid growth in the demand for energy. Peter's role will be particularly crucial in helping us further develop business opportunities across the globe."

Added Peter, "This is an exciting time to be joining GL Noble Denton. The company has a strong reputation for providing expert technical
advice and software solutions to the oil and gas industry's elite, and the company is in an excellent position to continue to take advantage of a rapidly expanding market."

Oil & Gas Post

Promote Your Page Too
LINK

Noble Energy Pays $3.4 Billion For 50% Stake in Consol's Marcellus Assets

- Noble Energy Pays $3.4 Billion For 50% Stake in Consol's Marcellus Assets



Aug 18, 2011

Noble Energy (NYSE:NBL) agreed to pay $3.4 billion to Consol Energy (NYSE:CNX) for a 50% interest in Consol's Marcellus Shale assets.

The two companies will create a joint venture to develop Consol's 663,350 acres in the region.

In early trading, Consol rose $1.80, or 4.24%, to $42.22. In spite of the deal between Consol and Noble, most companies with property in the Marcellus region are declining along with the broader market.

Noble Energy (NYSE:NBL) has a potential upside of 33.4% based on a current price of $83.39 and an average consensus analyst price target of $111.25.

Oil & Gas Post

Promote Your Page Too
LINK

Noble, CONSOL Team Up in $3.4B Marcellus JV

- Noble, CONSOL Team Up in $3.4B Marcellus JV

Thursday, August 18, 2011
Noble Energy Inc.

Noble Energy has signed definitive agreements which create a joint venture partnership with CONSOL for the development of their Marcellus Shale properties in southwest Pennsylvania and northwest West Virginia.

Under the arrangement, Noble Energy will purchase a 50 percent interest in 663,350 net undeveloped acres for $1.07 billion, payable in three equal annual installments beginning at closing. In addition, the Company will fund $2.13 billion of CONSOL's future drilling and completion costs. This funding obligation is expected to extend over an eight-year period and is limited to one third of CONSOL's drilling and completion costs with an annual cap of $400 million and a suspension of disproportionate funding at natural gas prices below $4 per million British thermal unit (MMBtu). The acreage value of $3.2 billion equates to a discounted present value of $7,100 per net acre. Noble Energy will also acquire a 50 percent interest in 70 million cubic feet equivalent per day (MMcfe/d) of existing Marcellus production and infrastructure for $219 million. The payments are anticipated to be funded from cash on hand and the Company's currently undrawn revolving credit facility. The effective date of the transaction is July 1, 2011. Closing is expected to occur by the end of September 2011, subject to customary adjustments and conditions.

Key operational aspects of the joint venture include:

• Acreage estimated to contain 7.4 trillion cubic feet equivalent (Tcfe) risked resources net to Noble Energy's interest, of which 400 billion cubic feet equivalent (Bcfe) were proven reserves at year-end 2010
• More than a decade of development activity anticipated, which includes the drilling of approximately 4,400 gross well locations
• Net production to Noble Energy's interest has the potential to reach 600 MMcfe/d in 2015 and is expected to continue growing into the next decade
• Leasehold position is over 85 percent held by production, almost entirely operated with close to 100 percent working and 88 percent net revenue interests
• A pre-defined long-term development plan forecasts drilling activity to increase from 4 rigs to 16 rigs in 2015
• Operations to be shared between the partners with Noble Energy's initial focus on the wet gas portion of the acreage
• Sharing of midstream infrastructure and access to water handling capabilities

Charles D. Davidson, Noble Energy's Chairman and CEO, commented, "Noble Energy is excited about the opportunity to establish a position in the Marcellus Shale, which is considered to be one of the most economically attractive developments in North America due to its enormous resource potential, its proximity and access to premium markets, and its competitive cost structure. This transaction will complement and further strengthen our U.S. portfolio by adding a high-quality asset with a substantial growth profile. The Marcellus, combined with our ongoing developments in the DJ basin and deepwater Gulf of Mexico, will provide important balance to our rapidly expanding international programs. Spreading the transaction costs over an extended time horizon creates better partner alignment on investment decisions and maintains our strong balance sheet."

David L. Stover, President and COO, added, "Noble Energy is fortunate to be partnering with CONSOL, a well-known and respected Appalachian operator. The joint oversight and operations are designed to create value through the sharing of best practices and expertise. Both companies are committed to operating in a safe, environmentally responsible manner while maintaining a good working relationship with the local communities."

J. Brett Harvey, CONSOL's Chairman and CEO, commented, "We are extremely pleased to have Noble Energy as our partner in the Marcellus. Noble Energy is a world-class operator that shares CONSOL's dedication to safety and compliance and they bring a strong technical and operational expertise to this partnership. This agreement will benefit the regional economy, the communities in which we operate, our employees, and our respective companies. Together we will be able to accelerate the development of this significant resource safely, efficiently and economically."

Oil & Gas Post

Promote Your Page Too
LINK

Noble Briefs New Contracts, Contract Extension for Rigs

- Noble Briefs New Contracts, Contract Extension for Rigs

Monday, August 08, 2011
Noble Corp.

Noble has been awarded a contract for the semisubmersible rig Noble Paul Romano and received a contract extension on the semisubmersible rig Noble Max Smith, two rigs located in the Gulf of Mexico. In addition, the Company has been awarded a contract for the jackup rig Noble George Sauvageau operating in the Southern sector of the North Sea.

The Noble Paul Romano has been awarded a six well, approximately 180-day contract by Gujarat State Petroleum Corporation Ltd. (GSPC) for operations offshore Egypt at a dayrate of $325,000, excluding mobilization revenues. The rig, which has been idle in the U.S. Gulf of Mexico since June 2010, is expected to commence the new contract in October 2011, following mobilization to an initial drilling location in the Eastern Mediterranean Sea. The contract could be extended for up to four optional wells. The Noble Paul Romano is a Noble EVA 4000, conventionally moored deepwater semisubmersible rated to operate in water depths of up to 6,000 feet.

Also, the Noble Max Smith, operating offshore Mexico for Pemex Exploracion y Produccion (PEMEX), has received a five-month extension of its current contract. The extension commenced in August 2011 at a dayrate of $380,000. The Noble Max Smith is a Noble EVA 4000, conventionally-moored deepwater semisubmersible capable of operating in water depths of up to 7,000 feet. The rig has operated offshore Mexico since August 2008.

In addition, the Company reported that the semisubmersible rig Noble Driller commenced its full operating dayrate of $383,000 on August 1, 2011 and has mobilized to an operating location in the U.S. Gulf of Mexico. The rig is under contract through June 2013.

Finally, the Noble George Sauvageau has been awarded a one-year contract by Wintershall for operations in the Southern sector of the North Sea at a dayrate of $115,000. The rig is now firmly committed through 2012.

Oil & Gas Post

Promote Your Page Too
LINK

Delmar Awarded Mooring Contract by Noble

- Delmar Awarded Mooring Contract by Noble

Wednesday, August 03, 2011
Delmar Systems Inc.

Delmar Systems was awarded a contract by Noble Energy EG, Ltd. to supply an eight-leg preset mooring system for use in Noble Energy's Aseng Development off the coast of Equatorial Guinea, West Africa. Delmar provided Noble Energy a full compliment of
mooring equipment including Delmar's patented OMNI-Max™ anchors and Delmar Subsea Connectors (DSCs). All equipment has been successfully delivered to Noble Energy EG's yard in Equatorial Guinea.

The patented Delmar OMNI-Max anchor is a gravity-installed vertically loaded anchor (VLA) that offers unique performance characteristics not found in other deepwater anchor foundations. The OMNI-Max anchor is capable of being loaded in any direction 360° around the axis of the anchor. This anchor technology offers a great benefit in the design of mooring systems that reduces risk to subsea infrastructure in the event of station-keeping damage or failure. This proven anchor concept has been deployed and retrieved on over 150 anchor locations.

The Delmar developed and patented DSC is used with MODUs (mobile offshore drilling units) and permanent mooring installations to allow single vessel deployment of anchors and mooring lines. The DSC provides for easy connect/disconnect capability with the use of a standard ROV.

"We are pleased that Noble Energy EG has chosen our mooring technology for their project. Our patented technologies have proven themselves as the safest, most efficient mooring solutions used in the offshore mooring industry," said Delmar's Executive Vice President, Brady Como.

Oil & Gas Post

Promote Your Page Too
LINK

Noble Adds to High-Spec Jackup Fleet with Two Newbuilds

- Noble Adds to High-Spec Jackup Fleet with Two Newbuilds

Monday, August 01, 2011
Noble Corp.

Noble has exercised options with Sembcorp Marine's subsidiary Jurong Shipyard for the construction of two additional high-specification heavy duty, harsh environment JU3000N jackup drilling rigs. This order will bring to six the total number of new jackup rigs the Company will have under construction with the Jurong Shipyard.

David W. Williams, Chairman, President and Chief Executive Officer, Noble Corporation, stated, "We continue to see a growing interest from clients for the advanced features of the JU3000N jackup design. Opportunities for these units are evident in several offshore regions, including the North Sea, Middle East and Asia. This latest rig order reflects our continuing commitment to expand our ownership of industry-leading offshore drilling technology, enabling us to address some of the most demanding well construction challenges around the world."

Total delivered costs for these latest two orders are estimated at approximately $245 million per rig, including project management, spares, and start-up costs, but excluding capitalized interest. Payment terms are consistent with the order of the four previous rigs placed with the Jurong Shipyard since December 2010: 20 percent of the construction price due at contract signing, 20 percent due at steel cutting, and the remainder due at rig delivery. The two latest orders are expected to be delivered from the shipyard during the third and fourth quarters of 2014, following which would be mobilization and acceptance testing by their respective future customers.

The Friede & Goldman JU3000N design is an enhanced evolution of the JU2000E design and represents the latest generation of high-specification jackup drilling rig with greater capacities and capabilities than most existing units. The rigs, which are approximately 231 feet in length and 270 feet in breadth, will have the capability to operate in water depths up to 400 feet and drill to depths of 30,000 feet. The rigs will each have a seventy-five foot cantilever, 2.5 million pounds of hook load capacity, a high-capacity mud circulating system, and a 15,000 psi blowout preventer system. The units are capable of off-line pipe handling and offer accommodations for up to 150 people.

In addition to six newbuild jackup projects, Noble has seven ultra-deepwater drillships under construction, three of which are scheduled to be delivered later this year. The Company continues to evaluate an option it has with Hyundai Heavy Industries Co. Ltd. for the construction of an additional ultra-deepwater drillship that expires on August 31, 2011, with delivery taking place in the second half of 2014.

Oil & Gas Post

Promote Your Page Too
LINK

Noble Energy Sees 44% Increase in 2Q Profits

- Noble Energy Sees 44% Increase in 2Q Profits

Thursday, July 28, 2011
Noble Energy Inc.

Noble Energy reported second quarter 2011 net income of $294 million, or $1.61 per share diluted, on revenues of $954 million. The Company's second quarter 2010 net income was $204 million, or $1.10 per share diluted, on revenues of $751 million. Net income for the second quarter 2011 includes unrealized commodity derivative gains, a gain on asset divestiture, as well as certain asset impairments. Excluding these items, second quarter 2011 adjusted net income was $263 million, or $1.44 per share diluted. Adjusted net income for the second quarter of 2010 was $198 million, or $1.07 per share diluted.

Discretionary cash flow for the second quarter 2011 was $659 million, compared to $496 million for the similar quarter in 2010. Net cash provided by operating activities was $745 million, and capital expenditures were $702 million.

Key highlights for the second quarter 2011 include:

• Sold 174 million cubic feet per day (MMcf/d) of natural gas in Israel, up 44 percent from the second quarter last year
• Produced a record 59 thousand barrels of oil equivalent per day (MBoe/d) in the DJ basin
• Drilled longest-ever horizontal Niobrara well in the DJ basin with a 9,100 foot lateral in the Wattenberg field
• Announced a discovery at Santiago in the deepwater Gulf of Mexico and increased Galapagos net production impact to over 10 thousand barrels of oil per day
• Accelerated startup of Aseng, offshore Equatorial Guinea, with first oil production now expected by year-end 2011
• Completed transfer of assets and exit from Ecuador
• Increased liquidity to over $3.6 billion, with $1.5 billion in cash at the end of the period

Charles D. Davidson, Noble Energy's Chairman and CEO, commented, "The second quarter was another strong quarter for Noble Energy. With our performance to date, we now expect sales volumes for the year will fall in the top end of our original guidance range. The second half of the year will be very active for our Company with further expansion of the DJ basin horizontal Niobrara play and active rig programs in all of our key offshore regions. We continue to make excellent progress on our major development projects with Aseng in Equatorial Guinea now well ahead of schedule and our exploration success at Santiago being integrated into the Galapagos project plans. In addition, we anticipate testing multiple exploration opportunities in West Africa, the Eastern Mediterranean, and the deepwater Gulf of Mexico before the end of the year."

The Company's total sales volumes for the second quarter 2011 averaged 215 MBoe/d. Production volumes were 216 MBoe/d, with the difference attributable to crude oil and condensate underliftings in Equatorial Guinea. Excluding the 2010 sale of certain onshore U.S. assets, as well as the impact of the Company's exit from Ecuador, sales volumes were up 3 percent from the second quarter 2010. Growth in the DJ basin and Israel more than offset timing differences in Equatorial Guinea liftings, as well as natural decline in the Company's various other onshore U.S. and deepwater Gulf of Mexico assets.

International sales volumes were 100 MBoe/d, up slightly from the second quarter last year despite lower liquid liftings in Equatorial Guinea and the termination of the Company's activities in Ecuador. Strong power generation demand and lower competing imports led Noble Energy's natural gas sales in Israel to be up substantially from the prior year. In the North Sea, field performance at Dumbarton and Lochranza accounted for increased oil volumes. The Company's 2010 volumes included 27 MMcf/d of natural gas in Ecuador, where its production sharing contract was terminated in late 2010.

Noble Energy's U.S. volumes were 115 MBoe/d for the second quarter of 2011, down versus the prior year period as a result of the 2010 sale of approximately 6 MBoe/d of Mid-continent and Illinois basin oil assets. In the DJ basin, second quarter 2011 volumes averaged over 59 MBoe/d, up 8 percent from the same period in 2010. The increase is attributed to the continued acceleration of the Company's vertical and horizontal drilling programs in Wattenberg. A third-party processing facility expansion came online in June 2011, which is allowing for further field production growth.

The Company's barrel of oil equivalent (Boe) realizations were up significantly for the second quarter 2011 versus 2010. International natural gas as a percentage of total Company volumes grew to 32 percent for the second quarter 2011, with global liquids representing 39 percent, and U.S. natural gas the remaining 29 percent.

Total production costs per Boe, including lease operating expenses, production and ad valorem taxes, and transportation were $7.92 per Boe, up approximately 5 percent from the second quarter 2010. The increase was largely attributable to higher production and ad valorem taxes caused by stronger commodity pricing. Lease operating expense was $5.06 per Boe and depreciation, depletion, and amortization was $12.01 per Boe for the second quarter 2011. Exploration expense for the quarter included recognition of dry hole cost on the Kora well, offshore Senegal and Guinea-Bissau. General and administrative expenses were up primarily related to increased staffing for the development of the Company's major development projects. Noble Energy's adjusted effective tax rate was 33 percent, with 52 percent deferred. Deferred taxes for the second quarter 2011 were impacted by the resolution of prior year tax reviews.

The Company recorded asset impairments totaling $131 million in the second quarter 2011, resulting from field performance at Oliver Creek in East Texas and Iron Horse in Wyoming, combined with a low natural gas price environment. Other operating income/expense includes a $26 million gain on the divestiture of assets, primarily a result of the Company's transfer of assets and exit from Ecuador. The gain and asset impairments are excluded from net income in determining adjusted net income. Also included in other income/expense is a $7 million deferred compensation income item relating to the quarterly value change of Noble Energy stock held in a benefit program.

UPDATED GUIDANCE

Noble Energy has raised its full year 2011 sales volume guidance to range from 215 to 218 MBoe/d, with the primary driver being higher natural gas volumes in Israel. For the third quarter 2011, the Company expects volumes to average 215 to 220 MBoe/d. Onshore U.S. volumes should be up versus the second quarter, with crude oil and natural gas growth from the DJ basin offsetting natural declines in other onshore natural gas areas. The deepwater Gulf of Mexico is expected to have lower sales volumes as result of natural decline and the impact of a Swordfish gas well that recently watered out. Higher volumes in Equatorial Guinea and strong demand for natural gas in Israel should contribute to increased international volumes.

The Company also adjusted its 2011 total capital program to approximately $3.0 billion. Over a third of the $300 million increase is related to new high-impact international exploration opportunities, with the remainder supporting the expansion of the Wattenberg horizontal Niobrara program, the acceleration of major projects in Equatorial Guinea, and the addition of a new near-term gas development project in Israel.

The addition of the offshore Senegal and Guinea-Bissau opportunity, as well as the updated timing of a Cyprus exploration well (now planned to spud in the fourth quarter) comprises the majority of the higher exploration capital for 2011.

The Company continues to expand its Niobrara drilling program at Wattenberg, with plans to bring a fifth horizontal rig into the field in the middle part of the third quarter. As a result of the additional rig and continued efficiencies, the Company anticipates drilling around 85 horizontal Niobrara wells in the DJ basin in 2011, up approximately 20 percent from original estimates. Offshore Israel, the Company is proceeding with development of the Noa field in the third quarter of 2011 (first production is expected in the second half of 2012).

In Equatorial Guinea, the Company is continuing to progress its liquid developments at Aseng and Alen. First production at Aseng is now expected by year-end 2011.

Noble Energy has modified its full year exploration expense guidance to range from $380 to $440 million as a result of the new exploration opportunities in West Africa (Senegal and Guinea-Bissau) and Cyprus. In addition, income from equity method investees has been increased to between $165 to $185 million, up from original guidance as a result of strong global liquid prices.

Oil & Gas Post

Promote Your Page Too
LINK

Noble 2Q Earnings Drop on Rig Downtime

- Noble 2Q Earnings Drop on Rig Downtime

Thursday, July 21, 2011
Noble Corp.

Noble reported second quarter 2011 earnings of $54 million, or $0.21 per diluted share, matching earnings reported for the first quarter of 2011. Results for the second quarter included a $0.04 per diluted share benefit relating to the settlement of certain discrete tax matters. First quarter 2011 results included a one-time after-tax net gain of $0.06 per diluted share relating to the substitution of the drillship Noble Phoenix for the drillship Noble Muravlenko in Brazil. Contract drilling services revenues totaled $590 million in the second quarter of 2011, up nine percent from $543 million in the first quarter of 2011. Contract drilling margin percentage for the second quarter of 2011 was approximately 43 percent compared to 44 percent in the prior quarter. Noble invested $815 million in capital projects during the second quarter.

At June 30, 2011, approximately 73 percent of the Company's available rig operating days were committed for the remainder of 2011 and approximately 43 percent were committed for 2012. The Company's total backlog at June 30, 2011 was approximately $13 billion.

David W. Williams, Chairman, President and Chief Executive Officer, noted, "Second quarter results were significantly hindered by several downtime events involving five rigs. Although we were disappointed by the interruption in service on these rigs, most of which pertained to subsea equipment and control systems, four out of five rigs returned to service prior to the end of the second quarter. Despite the fleet downtime, the quarter was characterized by an improvement in business fundamentals, as utilization and tendering activity improved for both jackups and deepwater units, and several Noble rigs returned to active status."

Operations Highlights

In Mexico, six of Noble's jackups returned to active status during the second quarter following the award of contracts, while a contract on the Noble Sam Noble is expected to commence by the end of July. Also, the Noble Roy Butler was awarded a three-year contract in July, which is expected to commence in September 2011 following the completion of a leg-extension project. Dayrates for the rigs that have or will soon return to work range from approximately $80,000 to $100,000. Noble now has all 12 of its jackup rigs in Mexico under contract, with 10 of the 12 units under contract into late 2011 or beyond.

In the North Sea, the jackup Noble Byron Welliver was awarded a three-well contract at a dayrate of $91,000, while the jackup Noble Lynda Bossler was awarded a two-well contract at a dayrate of $105,000. Both rigs are expected to commence their new contracts in or around January 2012.

The Company continued to build its presence in Saudi Arabia following the award of contracts for the jackups Noble Gene House and Noble Joe Beall. The three-year contracts are expected to commence in September 2011 with an operating dayrate for each rig of $81,000. With these awards, the Company now has four jackups committed to Saudi Aramco.

Finally, in the U.S. Gulf of Mexico, the semisubmersible Noble Jim Day began receiving its full contract dayrate of $485,000 on July 11 following the award to our client of permits necessary to commence well operations in the region. In addition, certification of the subsea control system on the semisubmersible Noble Driller was completed in July and the rig is expected to resume operations shortly at its full operating dayrate, pending receipt of a drilling permit. The Company now has certified subsea equipment and control systems on all six of its active semisubmersibles in the U.S. Gulf of Mexico.

"Offshore demand continues to build in most regions around the world, supporting expectations for gradually improving utilization and dayrates among our jackups and floating rigs," said Williams. He added, "Additional client demand for jackups is visible in Mexico and the Middle East. In the deepwater sector, Petrobras continues to tender for dynamically positioned and moored rigs for offshore Brazil with contract lengths of three to five years and we continue to see client interest in some of the emerging deepwater frontiers."

In closing, Williams stated, "Our fleet enhancement program, currently composed of the construction of seven ultra-deepwater drillships and four high-specification jackups, is transforming Noble into one of the industry's most modern and capable offshore drilling contractors. As client demand in the offshore sector increases and expands geographically, so does the need for technically advanced, versatile and efficient rigs that address both shallow and deepwater prospects. We believe our strategic growth initiatives strongly position the Company to benefit from further client demand and offshore industry expansion."

Oil & Gas Post

Promote Your Page Too
LINK

GL Noble Denton Bags Gig for Queensland Curtis LNG Proj.

- GL Noble Denton Bags Gig for Queensland Curtis LNG Proj.

Tuesday, July 12, 2011
GL Noble Denton

QGC has selected GL Noble Denton to provide verification services for the development of the Queensland Curtis Liquefied Natural Gas (LNG) project, which is expected to supply more than 8.5 million tonnes of LNG per annum through the development of two
LNG trains.

GL Noble Denton's experts will oversee the pipeline construction portion of the project over a two-year period. The company will supply
inspection services for the installation of the 540 kilometer underground line between natural gas fields in Australia's Surat Basin
and a natural gas liquefaction plant on Curtis Island near Gladstone on Queensland's coast.

The quality assurance and control contract was awarded to GL Noble Denton following the successful completion of an in-depth study into the production capacity of the LNG plant design that will be built on Curtis Island. GL Noble Denton used its in-house Monte Carlo simulation software, OPTAGON to provide a holistic assessment of the ability of the LNG plant to meet its intended use. The model also identifies equipment criticality and their contributions to unplanned downtime, and has provided results that have added significant strategic and operational value to the project.

Richard Bailey, GL Noble Denton's Executive Vice President for Asia Pacific said, "The Queensland Curtis LNG project is one of the
Australian oil and gas industry's most exciting developments to date. It will help define the country as a leading producer and exporter of
natural gas, and we are delighted to play a role its development.

"Demand for GL Noble Denton's services has increased considerably in Australia over the past year, as operators continue to unlock the
significant potential of the natural resources available on- and offshore the country."

Oil & Gas Post

Promote Your Page Too
LINK

Noble Appoints New VP, Investor Relations

- Noble Appoints New VP, Investor Relations

Wednesday, June 22, 2011
Noble Corp.

Noble announced that Jeffrey L. Chastain has been named Vice President, Investor Relations effective July 5, 2011. In this capacity, Chastain will be responsible for managing and fostering relationships with the global investment community.

"With his substantial experience and extensive knowledge of our industry, Jeff is well prepared to be an important contributor in this key role," said David W. Williams, Chairman, President and Chief Executive. "We are delighted to have Jeff as part of the Noble team."

Prior to joining Noble, Chastain had most recently served as Vice President, Investor Relations for Pride International. He holds Bachelor and Master of Business Administration degrees from the University of North Texas and is a past president of the Houston Chapter of the National Investor Relations Institute.

Oil & Gas Post

Promote Your Page Too

Noble Extends Footprint in West Africa

- Noble Extends Footprint in West Africa

Wednesday, June 08, 2011
Noble Energy Inc.

Noble has joined a venture that is exploring the AGC Profond block located offshore Senegal and Guinea-Bissau in West Africa. The AGC Profond block, covering more than two million gross acres in water depths up to 11,500 feet, is in a designated cooperation area between the two countries. The venture has identified a number of prospects and leads on the acreage. Approximately 45 percent of the block is covered by existing 3D seismic.

The first target to be drilled is the Kora prospect in the northern part of the block, nearly 65 miles offshore in approximately 8,600 feet of water. The Kora prospect has a Cretaceous oil target with gross resources estimated at 450 million barrels of oil equivalent. The chance of success at the prospect is estimated by Noble Energy to be 20 percent. Total well depth is planned to be approximately 15,200 feet. Drilling is anticipated to begin in late June 2011 utilizing the Maersk Deliverer rig, with results expected by the end of August 2011.

David L. Stover, Noble Energy's President and COO, commented, "We are pleased to be adding this new exploration area to the portfolio. Offshore West Africa is a region where the industry has had numerous recent exploration successes, including our own offshore Equatorial Guinea and Cameroon. The AGC Profond block is an area that has not previously been explored and we believe it has significant oil potential. Our new ventures team did a great job of capturing this opportunity for Noble Energy, expanding our already large exploration inventory."

Ophir will operate the Kora-1 exploration well and, in the event of a discovery, Noble Energy will become the operator for appraisal and development activities. Noble Energy has a 30 percent working interest. Other interest owners are Ophir with 36.7 percent, Rocksource AGC Profond AS with 12.5 percent, and FAR Ltd. with 8.8 percent. The remaining interest is held by L'Entreprise, the AGC state-owned entity, with 12 percent.

Oil & Gas Post

Promote Your Page Too

Noble Exits Ecuador

- Noble Exits Ecuador

Tuesday, May 31, 2011
Noble Energy Inc.

Noble has received compensation totaling $97 million for the transfer of its assets in Ecuador to various government-affiliated entities. Compensation was received for the offshore Amistad field assets and Block 3 production sharing contract which was terminated by the government of Ecuador on November 25, 2010. In addition, total proceeds included an amount for the assignment of the Machala Power Electricity concession and its associated assets. Noble Energy previously owned these assets with a 100 percent working interest. The Company's net book value for the assets totaled approximately $68 million.

Oil & Gas Post

Promote Your Page Too

Noble Strikes Oil at Santiago Prospect in GOM

- Noble Strikes Oil at Santiago Prospect in GOM

Tuesday, May 31, 2011
Noble Energy Inc.
by SubseaIQ

Noble Energy announced a discovery at the Santiago exploration prospect in the deepwater Gulf of Mexico. The well, located in 6,500 feet of water on Mississippi Canyon Block 519, was drilled to a total depth of approximately 18,920 feet. Open-hole logging identified approximately 60 feet of oil pay in a high-quality Miocene reservoir. Noble Energy is the operator at Santiago with a 23.25 percent working interest.

Santiago is the third discovery in the Company's Galapagos project, in addition to the prior successes at Santa Cruz and Isabela. Total gross resources discovered in the larger Galapagos project, including the Santiago well, are estimated by Noble Energy to be 130 million barrels of oil equivalent. Approximately 75 percent of the discovered resources are oil.

Charles D. Davidson, Noble Energy's Chairman and CEO, said, "The discovery at Santiago is a great way to resume our drilling program in the deepwater Gulf of Mexico. The well results were very consistent with our pre-drill expectations, and our teams did an outstanding job in the midst of a changing operating environment. We expect all three wells at Galapagos to be online in early 2012, and we are increasing the project's total net production impact to Noble Energy to over ten thousand barrels of oil per day. This major project will deliver significant near-term production and cash flow for our business."

In late February 2011, the Company received the industry's first drilling permit after the deepwater Gulf of Mexico moratorium for the Santiago prospect, where drilling was suspended in June 2010. Drilling operations resumed in early April 2011 following multiple reviews of operating and response plans, as well as third-party certifications of well designs and equipment.

Utilizing the Ensco 8501 drilling rig, the Company will immediately proceed with completion operations at Santiago. Those operations are expected to last approximately two months, after which the Company is planning to return to drilling the Deep Blue prospect (Green Canyon 723). Following Deep Blue, the Company is planning to spud an appraisal well at the Gunflint discovery (Mississippi Canyon 948).

Other interest owners in the Santiago discovery are Houston Energy, L.P. with 10 percent, Red Willow Offshore, LLC with 20.25 percent, and BP Exploration & Production Inc., a wholly-owned subsidiary of BP America Inc. with the remaining 46.5 percent.

Oil & Gas Post

Promote Your Page Too

Delek, Noble Energy Reconsider Developing Noa

- Delek, Noble Energy Reconsider Developing Noa

Friday, May 20, 2011
Knight Ridder/Tribune Business News
by Amiram Barkat, Globes, Tel Aviv, Israel

Sources inform "Globes" that Delek and Noble Energy are about to decide to develop the offshore Noa natural gas field near Yam Tethys and the Gaza Strip. Development of the field could ease the expected natural gas shortage if the gas flow from Egypt does not resume in full.

Until recently, Delek and Noble Energy said that there was no economic justification to spend $200 million to develop the two billion cubic meters Noa gas field. Development would take a year.

However, the prevailing high prices for natural gas have changed the picture. The price the two companies obtained in their gas supply contract with Hadera Paper -- $8.50 per million British Thermal Units, 50 percent above 2009 prices -- translates into $300 million per billion cubic meters.

Delek says prices are set according to the same formula used to set the price in the company's 2009 contract with Israel Electric Corporation (IEC), and it attributes the entire rise in the price in the Hadera Paper deal to the higher price of oil, to which natural gas prices are linked.

The financial report for the first quarter of Delek unit Delek Drilling indicates that the suspension in natural gas deliveries from Egypt did not greatly affect the company's revenue, partly because of the increased gas deliveries were sold at the same price as regular deliveries.

Delek and Nobel Energy reportedly supplied 100 million cubic meters of gas from Yam Tethys because of the suspension of Egyptian deliveries during the first quarter. Yam Tethys supplied 800 million cubic meters of gas during the first quarter.

The financial report also indicates that, despite the crisis in Egyptian gas deliveries, Israeli demand for natural gas slightly exceeded government projections. Demand reportedly increased because of increased use of natural gas by IEC, which for the first time preferred natural gas instead of coal for the generation of electricity, due to the sharp rise in the price of coal in recent months.

The price of coal has reached $120-130 per ton, comparable to $5.50 per million BTU for natural gas. When the excise on fuel and externalities are factored in the cost of coal equals the cost of natural gas, except that coal is more polluting and harmful to the health.

Copyright (c) 2011, Globes, Tel Aviv, Israel

Oil & Gas Post

Promote Your Page Too

Noble Halts Drilling Ops at Leviathan Appraisal

- Noble Halts Drilling Ops at Leviathan Appraisal

Monday, May 16, 2011
Noble Energy Inc.

Noble has ended drilling operations at the Leviathan #2 appraisal well location, offshore Israel. During the drilling process, the Company identified water flowing to the sea floor from the wellbore. The source is a water sand that flowed behind the surface casing. It has been monitored closely and there are no indications of any hydrocarbons in the produced water. Drilling in the Leviathan #2 well had not yet reached the depth of the targeted gas intervals discovered in the Leviathan #1 well.

The Company has concluded that the current location and wellbore are unsuitable for continued drilling operations. As such, Noble Energy plans to relocate the drilling rig to a nearby location where it will resume the Leviathan natural gas appraisal drilling program.

Noble Energy operates Leviathan, offshore Israel in the Rachel and Amit licenses, with a 39.66 percent working interest. Other interest owners are Delek Drilling and Avner Oil Exploration with 22.67 percent each and Ratio Oil Exploration with the remaining 15 percent.

Oil & Gas Post

Promote Your Page Too

Ahlstrom to Lead Strategic Development at Noble

Ahlstrom to Lead Strategic Development at Noble

Thursday, May 05, 2011
Noble Corp.

Noble Corp. on Thursday announced that Lee M. Ahlstrom has been named to the position of Senior Vice President, Strategic Development.

Ahlstrom will be responsible for evaluating and developing strategic alternatives and initiatives to guide the Company's path toward increasing shareholder value into the future and he will report to David W. Williams, Chairman, President and Chief Executive Officer. Ahlstrom joined the Company in May 2006 and has served as Vice President of Investor Relations and Planning since that time.

"Lee's appointment recognizes not only his outstanding professional qualifications and extensive knowledge of the global offshore drilling industry, but also the importance we place on a strategic focus on growth and increasing shareholder value," said David W. Williams, Chairman, President and Chief Executive Officer. "Lee's broad understanding of the competitive landscape, world markets and finance coupled with his engineering background not only make him uniquely qualified, but will also provide an added dimension to our management team as we continue to develop our plans for the future."

Ahlstrom holds a master of mechanical engineering degree and a bachelor of mechanical engineering degree from the University of Delaware. He has 20 years of energy industry experience and previously served as Director, Investor Relations at Burlington Resources and held various management positions at UNOCAL Corporation, including Manager, Planning & Strategy, Deepwater, USA, Manager, Investor Relations and Executive Assistant to the President and Chief Operating Officer. Prior to UNOCAL, Ahlstrom held the position of Engagement Manager with McKinsey & Company and held various engineering positions with Exxon Company, U.S.A.

Additionally, Simon Johnson, who held the position of General Manager, Marketing and Contracts, has been named Vice President, Marketing and Development. In this position, Johnson will be directly responsible for the Company's marketing and contracting efforts in West Africa, the Mediterranean, Middle East and South East Asia/Australia. Johnson graduated from Curtin University, Perth, Australia and has worked in the drilling industry for the past 15 years with several companies and in various operations and marketing roles in Australia, Aberdeen and most recently in Singapore where he was responsible for Seadrill's marketing function in the Middle East and SEA.

"We are delighted to have Simon as part of our management team and believe his energy, knowledge and experience make him an ideal addition to our worldwide marketing effort," said Williams.

Oil & Gas Post

Promote Your Page Too