HOUSTON, Aug. 13, 2012 /PRNewswire/ -- Noble Energy, Inc. (NYSE: NBL) today announced that it has signed a definitive agreement to sell certain oil and natural gas properties in Kansas to an affiliate of Citation Oil & Gas Corp., a privately held Houston based oil and gas company, for approximately $140 million. The transaction has an effective date of April 1, 2012 and is expected to close in September 2012, subject to customary closing conditions and adjustments.
The properties include Noble Energy's interest in about 250 producing wells on approximately 14,000 net acres. As of the effective date, net production was approximately 1,000 barrels of oil equivalent per day and net proved reserves were approximately 7 million barrels of oil equivalent. Production is almost entirely crude oil.
David L. Stover, Noble Energy's President and COO, commented, "The Kansas property divestiture is our third announced sale this quarter and completes the first phase of our onshore non-core divestment plan. These transactions, along with the sales of our Dumbarton and Lochranza assets in the North Sea, are expected to generate approximately $1.1 billion of after-tax proceeds by the end of the third quarter. The next phase of our non-core divestment program, continuing into 2013, involves small asset packages in the Mid-continent, Gulf Coast, San Juan, and Ark-La-Tex areas and our remaining assets in the North Sea."
Tudor, Pickering, Holt & Co. advised Noble Energy on the transaction.
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 "indicates," "anticipates," "suggests," "possibility," "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 planned development activities, 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, exploration and development risks, drilling and operating risks, the presence or recoverability of estimated reserves, the volatility in commodity prices for crude oil and natural gas, the negotiation and execution of definitive agreements, environmental 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.
SOURCE Noble Energy