|By PR Newswire||
|October 21, 2013 07:00 AM EDT||
HOUSTON, Oct. 21, 2013 /PRNewswire/ -- Noble Energy, Inc. (NYSE: NBL) today announced the closing of an acreage exchange with Anadarko Petroleum Corporation (NYSE: APC) in the greater Wattenberg area of northern Colorado. Each party contributed approximately 50,000 net acres to the exchange. The effective date of the transaction is January 1, 2013.
David L. Stover, Noble Energy's President and Chief Operating Officer, commented, "This strategic transaction will create numerous synergies for both Noble Energy and Anadarko and allows us to maximize the value of this premier oil asset, as acreage is consolidated in key operating areas. As we move forward with our integrated development plans within the DJ Basin, we expect to realize significant efficiency improvements including centralized field facilities, streamlined operations and reduced land work. The large contiguous acreage blocks will provide the opportunity to optimize drilling activities and add more extended-reach lateral wells to the program."
Noble Energy was reimbursed $202 million for capital spent to drill and complete wells on the conveyed acreage. This was partially offset by other adjustments in determining the $105 million of cash the Company received at closing. The exchange will lower net production from recent levels by approximately 8,000 barrels oil equivalent per day, almost entirely related to the recently drilled wells. This short-term reduction in production is anticipated to be quickly offset with operational efficiencies and cost savings. For 2014, the Company's DJ Basin volumes are still expected to grow at a rate of at least 20 percent.
The attached map shows the impact the exchange had on the Company's acreage position.
Noble Energy is a leading independent energy company engaged in worldwide oil and gas exploration and production. The Company has core operations onshore in the U.S., primarily in the DJ Basin and Marcellus Shale, in the deepwater Gulf of Mexico, offshore Eastern Mediterranean, and offshore West Africa. Noble Energy is listed on the New York Stock Exchange and is traded under the ticker symbol NBL. Further information is available at www.nobleenergyinc.com.
This news release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Words such as "anticipated," "intends," "indicates," "suggests," "possibility," "believes," "expects," "intends," "will," "should," "may," and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect Noble Energy's current views about future events. They include planned development activities, business strategy and other plans and objectives for future operations. No assurances can be given that the forward-looking statements contained in this news release will occur as projected and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, without limitation, government approvals, changes in governmental policies and regulations, other political developments, the volatility in commodity prices for crude oil and, in particular, natural gas, exploration and development risks, drilling and operating risks, the presence or recoverability of estimated reserves, the possibility of regional conflict, cross-border violence, terrorist acts or other disturbances within the region, environmental risks, competition, the ability of management to execute its plans to meet its goals and other risks inherent in Noble Energy's business that are discussed in its most recent annual report on Form 10-K and in other reports on file with the Securities and Exchange Commission. These reports are also available from Noble Energy's offices or website http://www.nobleenergyinc.com. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Noble Energy does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change.
SOURCE Noble Energy