Independent oil and gas producer
Noble Energy Inc.
(
NBL
) made an offshore natural gas discovery in the Republic of Cyprus.
The discovery was made in Cyprus Block 12 which covers an area of
40 square miles (103.6 square kilometers).
The Cyprus A-1 well was spud at a total depth of 19,225 feet
(5,859.8 meters) including water depth of 5,540 feet (1,688.6
meters). This resulted in a find of 310 feet of net natural gas pay
in multiple high-quality Miocene sand intervals. Noble Energy
expects the reserves to hold 5-8 trillion cubic feet (Tcf) of
gas.
Noble Energy has been active in this region and has leveraged
its existing infrastructure to carry out the necessary drilling
activity offshore Cyprus. In September 2011, Noble Energy decided
to move
Noble Corporation
's (
NE
) Homer Ferrington drilling rig from its Noa prospect offshore
Israel and deployed it for drilling in the Cyprus A project.
The discovery made in the Levant Basin, located in the eastern
Mediterranean region, is estimated to hold 122 Tcf of recoverable
natural gas. Noble Energy and its partners have been successfully
working in this region and the current discovery is the fifth of
its kind, taking the total tally thus far to 33 Tcf of natural
gas.
Noble Energy will be the operator of the well with a 70% working
interest. The other partners will be Delek Drilling and Avner Oil
Exploration having 15% working interest each in the well.
We believe as we move ahead the demand for natural gas will
increase due to its clean burning nature. It is undisputedly an
environmentally cleaner substitute for coal for the generation of
power. Besides, we also feel the strategic location of the natural
gas finding will allow the company to cater to the increasing
demand of European and Asian countries and boost the company's
fortunes in the near future.
Noble Energy holds a Zacks #2 Rank, which is equivalent to a Buy
rating for a period of one to three months.
Based in Houston, Texas, Noble Energy operates internationally
and engages in the acquisition, exploration, development,
production, and marketing of crude oil, natural gas and natural gas
liquids.
NOBLE ENERGY (
NBL
): Free Stock Analysis Report
NOBLE CORP (
NE
): Free Stock Analysis Report
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