Noble’s net loss deepens

U.S. independent Noble Energy’s net loss the second quarter of 2017 deepened to $1,5 billion, versus a loss of $315 million a year ago.

The company explained the loss was driven by the impact of the Marcellus upstream asset exit in the U.S.

Total Company sales volumes for the second quarter of 2017 were 408 thousand barrels of oil equivalent per day (MBoe/d). Adjusting for the early timing of the Marcellus divestiture closing (June 28), which resulted in lower volumes for the quarter on average by 3 MBoe/d, sales volumes were in the upper half of the company’s increased guidance range.

Crude oil and condensate sales volumes were 134 thousand barrels per day (MBbl/d). Natural gas liquids (NGLs) totaled 67 MBbl/d and natural gas contributed 1.2 billion cubic feet per day. U.S. onshore sales volumes averaged 269 MBoe/d and offshore sales volumes were 139 MBoe/d.

Noble said approximately 76 percent of the Company’s $656 million organic capital expenditures were allocated to U.S. onshore plays and 22 percent was spent in Israel primarily for the development of the Leviathan, a giant gas field in the Mediterranean Sea, offshore Israel.

Updating on the Leviathan progress, Noble said it had, during the quarter, continued to progress the Leviathan project within budget towards first gas by the end of 2019.

Drilling of a Leviathan production well concluded in July. In conjunction with the recent Leviathan sanction, the company booked initial proved reserves associated with the first phase of development of 550 MMBoe net, representing an increase of over 35 percent to total company reserves at the end of 2016.

Noble said it averaged 275 MMcfe/d in sales volumes from its Israel assets within the second quarter, up slightly from the first quarter of 2017.

Elsewhere on the offshore front, sales volumes in the Gulf of Mexico were at 27 MBoe/d, with 81 percent oil contribution, reflecting continued strong performance from the company’s Big Bend, Dantzler and Gunflint fields. Noble Energy received approval from the United States Coast Guard for the Neptune facility life extension, the first Gulf of Mexico spar life extension granted in the industry. The Neptune facility hosts production for the Company’s Swordfish field.

Sales volumes for West Africa were 66 MBoe/d (36 percent oil, 6 percent NGL, and 58 percent natural gas), consistent with produced volumes. In April, the Company executed a unitization agreement with the partners of Block D over the Alba Production Sharing Contract in Equatorial Guinea. Noble Energy’s working interest in the Alba field has been reduced from 35 percent to 33 percent going forward.

 

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