Oil and gas exploration and production company,
Noble Energy Inc.
) successfully drilled a 15,989 feet well at the Big Bend
exploration prospect in the deepwater Gulf of Mexico. The well,
located in 7,200 feet of water on Mississippi Canyon Block 698,
encountered roughly 150 feet of net oil pay in two high-quality
Noble Energy has a 54% working interest in the Big Bend
prospect making it a major operator along with other stake owners
like W&T Energy VI, LLC - a business wing of
W&T Offshore Inc.
) - with a 20% interest, Red Willow Offshore LLC with 15.4% and
Houston Energy Deepwater Ventures V, LLC with 10.6%
The company also declared drilling results from its offshore
Falkland Scotia exploration well. The well drilled to a depth of
18,226 feet accomplished its Cretaceous objective on the 2D
seismic scale. Initially the well logging identified 164 feet of
low quality reservoir at the targeted drilling section and came
The company has a 35% interest in the 10 million acre Scotia
prospect accompanied by Edison International Spa with a 25%
interest and Falkland Oil & Gas Ltd
("FOGL.L") with a 40% stake.
Although the Scotia well did not witness significant reservoir
section and experienced hydrocarbons quantity below the targeted
level, the company is keen on exploring the viability of this
prospect with the acquisition of 3D seismic technology. The
technology would help in assessing the possibilities of future
Meanwhile, the Big Bend find following the success at
Galapagos will drive future growth opportunities at Noble Energy.
With immense reservoir assets and high fluid characteristics, we
believe this prospect will augment production leading to upside
in the near-term top line.
Noble Energy is firmly focused on the development of its
deepwater exploration programs. The company at the end of
September 2012 signed a 3-year deal with
Atwood Oceanics Inc.
) subsidiary for the construction of a new build drillship to
boost its major deepwater exploration and development
Another exploration and production company,
Anadarko Petroleum Corporation
) Golfinho and Atum prospects are expected to propel growth with
current reserve expansion. Also, additional recoverable reserves
experienced at the Wattenberg play will be a vital element
augmenting the company's top line going forward.
The Zacks Consensus Estimates for Noble Energy for the fourth
quarter and full year 2012 currently stand at $1.02 and $4.55 per
share, respectively. The company had to shut down several of its
deepwater operations in the wake of Hurricane Sandy.
Production could not be restored because of flooding and
maintenance outages. In view of this, the company expects sales
volume to be on the lower end of the 2012 guidance range of
242-250 thousand barrels of oil equivalent per day (Mboe/d).
Based in Houston, Texas, Noble Energy engages in the
acquisition, exploration, development, production, and marketing
of crude oil, natural gas, and natural gas liquids in the DJ
Basin, Marcellus Shale, deepwater Gulf of Mexico, offshore
Eastern Mediterranean, and offshore West Africa. Noble Energy
retains a short-term Zacks #3 Rank (Hold rating).
ANADARKO PETROL (APC): Free Stock Analysis
ATWOOD OCEANICS (ATW): Free Stock Analysis
NOBLE ENERGY (NBL): Free Stock Analysis
W&T OFFSHORE (WTI): Free Stock Analysis
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