Noble Energy Inc
) strategy to expand its operation in the resource rich Gulf of
Mexico (GoM) has started to yield results. The company announced
encouraging final well results at the Katmai exploration well and
the Dantzler appraisal well in the deepwater GoM.
Noble Energy has plans to spend $1.5 billion in its global
deepwater operations in 2014, out of which a portion is earmarked
for strengthening its GoM footprint. The company is pursuing
an active exploration program in the region with the development of
the Big Bend, Gunflint and Dantzler projects.
At Katmai, in the Green Canyon zone, a total of 154 net feet of
crude oil pay was discovered in multiple reservoirs, including 117
net feet in Middle Miocene and 37 net feet in Lower Miocene
reservoirs. The well was drilled to a total depth of 27,900 feet in
2,100 feet of water.
At the Dantzler-2 appraisal well, located in Mississippi Canyon
782, Noble Energy discovered 122 net feet of crude oil pay in two
high-quality Miocene reservoirs. The well was drilled to a total
depth of 18,210 feet in 6,600 feet of water.
The new finding in a way justifies the company's capital investment
decision and enhances its fossil fuel reserve. The reserve at
Katmai is now expected in the range of 40-100 million barrels of
oil equivalent (boe), including 40-60 million boe discovered from
this initial well. Gross resources at Dantzler have increased to
65-100 million boe from 55-95 million boe.
At the beginning of the year the company was expecting a natural
decline in production from its existing GoM assets due to
maturation of assets. Undoubtedly, the new finding will help Noble
Energy to boost its production from the region going forward. Noble
Energy is the operator of Katmai and Dantzler, having a working
interest of 50% and 45% respectively.
In Jun 2014, Noble Energy acquired 50% of BP Plc.'s (
) interest in 17 deepwater exploration leases in the GoM. In
addition, the company acquired an exploration license in offshore
Noble Energy Gets Exploration License in Offshore
Noble Energy currently holds a Zacks Rank #3 (Hold). Some
better-ranked stocks in the sector include Cheniere Energy, Inc. (
) and Sanchez Energy Corporation (
), both sporting a Zacks Rank #1 (Strong Buy).
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