Strong Operating Performance Driving Fourth Quarter 2015 Volume Increase for Noble Energy
Capital expenditure estimates unchanged
Houston, Dec. 09, 2015 (GLOBE NEWSWIRE) --
Noble Energy, Inc. (“Noble Energy” or “the Company”) (NYSE: NBL) today increased its fourth quarter 2015 sales volumes to range between 405 and 415 thousand barrels of oil equivalent per day (MBoe/d), with the midpoint of the new estimate representing a 15 MBoe/d increase over the prior midpoint. Actual volumes sold in October and November 2015 exceeded expectations due to improved completion practices in the Eagle Ford and DJ Basin, as well as the accelerated ramp-up and early performance of Big Bend and Dantzler in the Gulf of Mexico. Combined, the two deepwater fields have already achieved their targeted peak production rate of 20 MBoe/d, net to Noble Energy. In addition, fourth quarter volumes in the Company’s other U.S. Onshore, West Africa and Israel assets is consistent with to slightly better than prior expectations.
Gary W. Willingham, the Company’s Executive Vice President of Operations, commented, “We are finishing 2015 with tremendous operating momentum and performance across the business. The Company’s 2015 capital budget remains unchanged and fourth quarter capital will be the lowest quarterly spend of the year. We’ve positioned the company to operate within cash flow while still being able to deliver modest pro-forma annual volume growth in 2016.”
Eagle Ford Well Performance Update
Performance from Lower Eagle Ford wells designed and completed by Noble Energy continue to materially outperform historical results from these assets. The most recent three wells, including the Gates 05D 10-20, 14-20, and 18-20, were all completed with reduced stage and cluster spacing, increased proppant concentration, and more conservative pressure management. The average 30-day IP for each of the wells, which have a lateral length of approximately 7,000 feet, was 4,885 Boe/d (10-20), 6,050 Boe/d (14-20), and 6,300 Boe/d (18-20).
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.
Hedging programs that E&Ps have in place in 2016 vary considerably. The chart below shows the range of oil and gas production for several E&Ps covered by hedging contracts. Pioneer Natural Resources (ticker: PXD) and Cimarex Energy (ticker: XEC) have hedged the largest portions of their remaining production at 85/75 and 80/90 percent, respectively, for oil and gas. This chart[Read More…]
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