#nobleenergy Is Producing More Oil In 2015 #investment #finance

By 9th December 2015 Industry News No Comments

Houston-based Noble Energy raised its 4Q15 sales volumes to range between 405 and 415 MBoe/d, with the midpoint of the new estimate representing a 15 MBoe/d increase over the previous midpoint. What this means is that despite cutting jobs, spending and operations over the last year, the company’s production is up, and thus it plans to sell more oil to market in 4Q than it previously expected.

How Was This Achieved?

Noble Energy said actual volumes sold in October and November surpassed expectations because of improved completion practices in the Eagle Ford and DJ Basin (Colorado), as well as the accelerated ramp-up and early performance of Big Bend and Dantzler in the Gulf of Mexico.

Combined, these two deepwater GOM fields have already achieved their targeted peak production rate of 20 MBoe/d, net to Noble Energy. Moreover, 4Q volumes in Noble Energy’s other US Onshore, West Africa and Israel assets “is consistent with to slightly better than prior expectations.”

Credit: Noble Energy’s Presentation at the 2015 Wells Fargo Energy Symposium, December 2015

In August, Noble Energy, with 350,000 net acres in the Marcellus Shale, shut down drilling in the shale gas play. The Marcellus is the second largest US onshore play in Noble’s portfolio (DJ Basin is the biggest at 410,000 acres- Noble reduced its rig count there to three earlier this year). In a December 8 presentation, the company said it expects decreased drilling and completion activity for the remainder of the year.

Outperforming In The Eagle Ford

Looking more closely at the company’s Eagle Ford operations, performance of Lower Eagle Ford wells designed and completed by Noble Energy continue to outperform historical results from these assets.

Credit: Noble Energy’s Presentation at the 2015 Wells Fargo Energy Symposium, December 2015

Noble said the most recent three wells, including the Gates 05D 10-20, 14-20, and 18-20, were all completed with reduced stage and cluster spacing, increased proppant concentration, and more conservative pressure management.

The average 30-day IP for each of the wells, which have a lateral length of approximately 7,000 feet, was 4,885 Boe/d (10-20), 6,050 Boe/d (14-20), and 6,300 Boe/d (18-20).

Management Comments

Gary W. Willingham, Noble Energy’s Executive Vice President of Operations, said, “We are finishing 2015 with tremendous operating momentum and performance across the business. The Company’s 2015 capital budget remains unchanged and fourth quarter capital will be the lowest quarterly spend of the year. We’ve positioned the company to operate within cash flow while still being able to deliver modest pro-forma annual volume growth in 2016.”

Feature Image: diaa.com