NBL in the Permian Basin
Posted: Tue Jan 10, 2017 1:16 pm
Noble Energy, Inc. (NBL) completed the acquisition of 7,200 net acres in the Southern Delaware Basin in Reeves County, TX. The acquisition price of $300 million was funded with available cash on hand.
The properties are located within and directly adjacent to Noble Energy’s existing assets in the Delaware Basin and produce nearly 2,400 barrels of oil equivalent per day (“BOE/d”). The acquisition has expanded Noble Energy’s acreage position and production in the Delaware Basin by nearly 20% to 47,200 net acres and 12,000 Boe/d, respectively.
"The new acreage expands our Delaware location inventory by approximately 150 new locations, bringing our total to over 1,800 future locations, and it also enhances the value of 325 existing drilling locations by extending lateral lengths and increasing our working interest," Gary Willingham, Noble's executive vice president of operations, said in the release. "We recently added a third drilling rig into the basin and are aggressively moving forward with development.”
Noble Energy recently provided an outlook through 2020 and an update on its U.S. onshore operations. Oil volumes from Noble Energy’s U.S. onshore assets are projected to grow at a rate of 23–29%, compounded annually over 2016–2020. Total production is projected to average between 540 and 625 thousand BOE/d in 2020, after adjusting for divestitures.
Noble Energy is allocating nearly 75% of capital for the development of the DJ Basin, Delaware and Eastern Mediterranean assets over the 2016–2020 time frame.
Noble Energy expects net free cash flow of $2.1–$2.7 billion over the 2016–2020 period.
The properties are located within and directly adjacent to Noble Energy’s existing assets in the Delaware Basin and produce nearly 2,400 barrels of oil equivalent per day (“BOE/d”). The acquisition has expanded Noble Energy’s acreage position and production in the Delaware Basin by nearly 20% to 47,200 net acres and 12,000 Boe/d, respectively.
"The new acreage expands our Delaware location inventory by approximately 150 new locations, bringing our total to over 1,800 future locations, and it also enhances the value of 325 existing drilling locations by extending lateral lengths and increasing our working interest," Gary Willingham, Noble's executive vice president of operations, said in the release. "We recently added a third drilling rig into the basin and are aggressively moving forward with development.”
Noble Energy recently provided an outlook through 2020 and an update on its U.S. onshore operations. Oil volumes from Noble Energy’s U.S. onshore assets are projected to grow at a rate of 23–29%, compounded annually over 2016–2020. Total production is projected to average between 540 and 625 thousand BOE/d in 2020, after adjusting for divestitures.
Noble Energy is allocating nearly 75% of capital for the development of the DJ Basin, Delaware and Eastern Mediterranean assets over the 2016–2020 time frame.
Noble Energy expects net free cash flow of $2.1–$2.7 billion over the 2016–2020 period.