Noble Energy Increases Third Quarter Volume Expectations, Driven Primarily by DJ Basin Performance and Infrastructure
Company also comments on favorable Knesset vote on Israel regulatory framework
Houston, Sept. 8, 2015 (GLOBE NEWSWIRE) -- Noble Energy, Inc. ("Noble Energy") (NYSE: NBL) today provided new third quarter 2015 sales volume guidance, with the midpoint of the Company's new expectation representing a 10 thousand barrel of oil equivalent per day (MBoe/d) increase over the midpoint of its prior estimate. Following strong volume performance in July and August, the Company has raised its anticipated third quarter 2015 sales volume range to between 360 and 370 MBoe/d. The increase was driven primarily by enhanced well performance and infrastructure expansion in the DJ Basin. In addition, strong production is resulting from the Company's assets in Texas (Eagle Ford and Delaware), Marcellus Shale, Israel, and Equatorial Guinea. Natural gas sales in Israel set a record in August as the Company's Tamar asset averaged more than one billion cubic feet of natural gas per day, gross, for the month.
Gary W. Willingham, the Company's Executive Vice President of Operations, commented, "The expansion of natural gas processing systems in Greater Wattenberg has continued to unlock the productive capacity of our DJ Basin operations. Production from our legacy vertical wells and older horizontal wells are benefitting from substantially reduced line pressures and improved third-party plant uptime. We have also continued to materially grow production from the East Pony Integrated Development Plan, which is primarily crude oil and is entirely handled by Noble Energy owned midstream assets. Strong production performance in our business is resulting from execution momentum and the benefits of operating a high-quality and diversified portfolio, despite reducing capital investment materially quarter over quarter throughout the year."
The third-party Lucerne-2 plant has been tested to a nameplate capacity of 200 million cubic feet of natural gas per day (MMcf/d). Addition of the Lucerne-2 plant has expanded total system natural gas processing capacity to 840 MMcf/d, resulting in line pressures being reduced by between 50 and 100 psi in various parts of Greater Wattenberg while also providing additional capacity for future growth. Noble Energy's net DJ Basin production has averaged approximately 115 MBoe/d through the first two months of the third quarter of 2015.
Update on Israel Regulatory Framework
On Monday, September 7, 2015, the Knesset voted in favor of the government's approved regulatory framework for oil and natural gas development.
David L. Stover, Noble Energy's Chairman, President and CEO, stated, "We are encouraged by the Knesset's vote expressing broad support for the framework, marking another step forward toward gas development. It is imperative that the government of Israel now act upon this support and follow through on this approved framework without further delay. Noble Energy remains prepared to conclude the negotiation of gas sales contracts, both in Israel and the regional market, and reengage project teams to advance the expansion of Tamar and initial development of Leviathan toward sanction. Development of these major projects will allow Israel to bring a second source of natural gas to the country and realize significant additional revenues, while meeting substantial underserved regional gas needs."
Noble Energy (NYSE: NBL) is a global independent oil and natural gas exploration and production company with total proved reserves of 1.7 billion barrels of oil equivalent at year-end 2014 (pro forma for the Rosetta acquisition). The company's diverse resource base includes positions in four premier unconventional U.S. onshore plays - the DJ Basin, Eagle Ford Shale, Delaware Basin, and Marcellus Shale - and offshore in the U.S. Gulf of Mexico, Eastern Mediterranean and West Africa. Driven by its purpose, Energizing the World, Bettering People's Lives®, the company is committed to safely and responsibly providing energy to the world while positively impacting the lives of our stakeholders. For more information, visit www.nobleenergyinc.com.
Forward Looking Statements
This news release contains certain"forward-looking statements"within the meaning of federal securities law. 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, 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, the ability to replace 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, management's estimates, or opinions change.
CONTACT: Brad Whitmarsh
(September 8, 2015 - 7:34 AM EDT)
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