Noble Energy Inc.
) announced drilling results from its Leviathan #4 appraisal well
situated off the coast of Israel. The well placed on the Rachel
block is now estimated to yield gross recoverable reserve of 18
trillion cubic feet (Tcf), in a range of 15 Tcf to 21 Tcf. The
previous recoverable reserves estimate at Leviathan was17
The Leviathan well, which was drilled to a depth of 16,992
feet, came across 454 net feet of natural gas pay. This is the
thickest net pay from all the wells drilled in the Leviathan.
Noble Energy is the major operator in the Leviathan play holding
a 39.66% stake. Other interest owners include Israel's Delek
Drilling and Avner Oil Exploration with each possessing 22.67%
while Ratio Oil Exploration has a 15% stake.
Following the Leviathan #4 operations and on approval from the
partner, the company intends to move the Ensco 5006 rig to the
Karish prospect in the Alon C block located offshore Israel.
Noble Energy is also the key stakeholder in the Karish play with
47.06% interest while Delek Drilling and Avner Oil each have
The Karish play has a pre-drill estimated reserve of 3.0 Tcf,
in the range of 2.3 Tcf to 3.6 Tcf. The well is projected to
reach total depth by the second quarter of 2013.
Presently, Noble Energy and other Leviathan partners are
negotiating with Woodside Petroleum Ltd for a possible
partnership. The interested parties are expected to draw a
farmout agreement for the expansion of Leviathan resources.
With growing demand for natural gas in Israel, the company is
aggressively investing in the Leviathan and is currently
negotiating with the Israel government for the approval of
another project in the concerned prospect. Noble Energy plans to
spend about $400 million in the Eastern Mediterranean operations
We believe the company's reserves-rich portfolio, especially
in West Africa and Eastern Mediterranean, will act as a catalyst
to growth, going forward. With start-up of production at the
Tamar play positioned in offshore Israel, the company expects a
ramp-up in sales volume in the upcoming quarters. Noble Energy
currently carries a Zacks Rank #3 (Hold).
We presently prefer Zacks Rank #1 (Strong Buy) operators,
Range Resources Corporation
Linn Co, LLC
), as well as Zacks Rank #2 (Buy)
Based in Houston, TX, Noble Energy is an independent oil and
gas company engaged in the acquisition, exploration, development,
production, and marketing of crude oil, natural gas, and natural
gas liquids mainly in the United States, West Africa, and Eastern
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