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Noble Hits Nat. Gas Offshore Cyprus - Analyst Blog

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.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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