Noble Energy Announces Gunflint Appraisal Results
HOUSTON, June 14, 2013 /PRNewswire/ -- Noble Energy, Inc. (NYSE: NBL) today announced that the second appraisal well at Gunflint successfully encountered 109 feet of net pay within the primary reservoir targets. Results of drilling, wireline logs and reservoir data have confirmed an estimated gross resource range(1) of 65 to 90 million barrels of oil equivalent in the primary structure, which was in line with Company expectations. The Mississippi Canyon 992 #1 well, located one mile west of the original discovery well, was drilled to a total depth of approximately 32,800 feet in a water depth of 6,100 feet. Commercial hydrocarbons were not encountered in the deeper exploration objective. Additional exploration potential remains in an adjacent three-way structure to the north, a candidate for future exploration following development of the confirmed resources.
Once operations are completed, the well will be suspended for future use. The net cost of drilling the lower exploration zone was approximately $15 million, which will be expensed in the second quarter of 2013.
Susan Cunningham, Noble Energy's Senior Vice President Deepwater Gulf of Mexico, West Africa and Frontier Regions, commented, "Our appraisal program at Gunflint solidifies our plans for a subsea tieback development, with sanction planned for later this year. Along with our Big Bend discovery, we now have two major projects in the deepwater Gulf of Mexico targeting first production at the end of 2015. These developments represent significant value to our overall portfolio."
Noble Energy plans to move the drilling rig to Troubadour, a low-risk amplitude prospect offsetting the Big Bend discovery, over the next several weeks. The well is expected to reach total depth late in the third quarter.
Noble Energy operates Gunflint with a 31.14 percent working interest. Other partners in the project are Ecopetrol America Inc. with 31.50 percent, Marathon Oil Company with 18.23 percent and Samson Offshore, LLC with 19.13 percent.
(1) Range of resource estimate based on 75th and 25th percentile probabilities
Noble Energy is a leading independent energy company engaged in worldwide oil and gas exploration and production. The Company has core operations onshore in the U.S., primarily in the DJ Basin and Marcellus Shale, in the deepwater Gulf of Mexico, offshore Eastern Mediterranean, and offshore West Africa. Noble Energy is listed on the New York Stock Exchange and is traded under the ticker symbol NBL. Further information is available at www.nobleenergyinc.com.
This news release contains certain "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Words such as "anticipates," "believes," "expects," "intends," "will," "should," "may," and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect Noble Energy' s current views about future events. They include estimates of oil and natural gas reserves and resources, estimates of future production, assumptions regarding future oil and natural gas pricing, planned drilling activity, future results of operations, projected cash flow and liquidity, business strategy and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected, and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, without limitation, the volatility in commodity prices for crude oil and natural gas, the presence or recoverability of estimated reserves, environmental risks, drilling and operating risks, exploration and development risks, competition, government regulation or other actions, the ability of management to execute its plans to meet its goals and other risks inherent in Noble Energy's business that are discussed in its most recent annual report on Form 10-K and in other reports on file with the Securities and Exchange Commission. These reports are also available from Noble Energy's offices or website, http://www.nobleenergyinc.com. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Noble Energy does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change.
The Securities and Exchange Commission requires oil and gas companies, in their filings with the SEC, to disclose proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. The SEC permits the optional disclosure of probable and possible reserves, however, we have not disclosed the Company's probable and possible reserves in our filings with the SEC. We use certain terms in this news release, such as "discovered gross resource range." This estimate is by its nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of being actually realized. The SEC guidelines strictly prohibit us from including these estimates in filings with the SEC. Investors are urged to consider closely the disclosures and risk factors in our most recent annual report on Form 10-K and in other reports on file with the SEC, available from Noble Energy's offices or website, http://www.nobleenergyinc.com.
SOURCE Noble Energy