Noble Energy, Inc. (NYSE: NBL) announced today the highlights of its 2010 analyst meeting with senior management to be held June 3 in Houston, Texas. Â Key highlights from the meeting include:
— Projected annual production growth of 10 percent compounded annually over the next five years, leading to 350 thousand barrels of oil equivalent per day (MBoe/d) in 2015
— Total proven reserves projected to be 1.6 billion barrels of oil equivalent (BBoe) by the beginning of 2015, a 14 percent compounded annual growth from year-end 2009
— Five major projects to deliver over 100 MBoe/d and $1 billion in free cash flow(1) in 2015, net to Noble Energy, with an after-tax net present value of over $4 billion
— Capital spending expected to average $2.6 billion per year over the next five years
— A 60 percent increase from 2008 in the Company’s global unrisked resource portfolio, which now totals 8.4 BBoe
— Total resources at Tamar, offshore Israel, increased to 8.4 trillion cubic feet (Tcf) gross, up 33 percent from the Company’s prior estimate
— Multiple additional prospects and leads identified on the Company’s
Eastern Mediterranean acreage, with gross unrisked resource potential greater than 30 Tcf
— Plans to drill Leviathan, a 16 Tcf gross prospect offshore Israel with a 50 percent geologic chance of success, later this year
— An agreement to sell certain non-core U.S. onshore assets, representing 5,700 Boe/d and 29 million barrels of oil equivalent (MMBoe) of reserves, for approximately $550 million
Charles D. Davidson, Noble Energy’s Chairman and CEO said, “Our analyst meeting will highlight the strong depth and diversity of our portfolio of opportunities, which have continued to expand rapidly. Â Driven by exploration discoveries over the past five years that total nearly a billion barrels of oil equivalent, we have a large inventory of major projects under development that will provide material future growth for our company. In addition, our global portfolio of future exploration and development opportunities gives us even greater confidence in our ability to sustain strong growth moving forward. We continue to be excited about our future and for the potential to deliver significant incremental value to our investors.”
Deepwater Gulf of Mexico
The recent moratorium on deepwater drilling has no impact on the Company’s current production and reserves. Â Noble Energy is investigating options to reschedule its drilling operations when activity in the deepwater Gulf of Mexico resumes in order to minimize project impacts. Â In the meantime, the Company will consider reallocating near-term Gulf of Mexico drilling capital to other opportunities.
The Company has updated total gross resources at the Galapagos development to be 130 MMBoe, with an additional 130 gross MMBoe of resources potentially available from upside recoveries and nearby exploration opportunities. Â Initial production estimates, net to Noble Energy, are six to eight MBoe/d, with the potential to grow to 10 to 16 MBoe/d, based on increased recoveries. Â
At the Deep Blue exploration prospect, Noble Energy announced that potential gross resources now range from 90 to 200 MMBoe. Â The geologic chance of success at Deep Blue has been increased to 50 percent, as a result of encountering hydrocarbons in the initial well. Â The Company also provided an updated resource range for Gunflint, now ranging from 70 to 500 MMBoe gross, dependent on the results of appraisal drilling. Â
The Company announced that its attractive prospect inventory in the deepwater Gulf of Mexico now includes over 40 prospects and 2 BBoe of net unrisked resource potential (550 MMBoe risked).
In Israel, the Company updated its continued progress on the Tamar project, including securing a large portion of the services and supplies required for development, as well as furthering the discussions with local and federal authorities to finalize the onshore receiving terminal location. Â The Tamar project remains on schedule for sanction in 2010 and first production in 2012. Â Gross recoverable resources at Tamar have been increased by 33 percent to 8.4 Tcf of gross natural gas as a result of updated reservoir studies. Â In total, Noble Energy’s discoveries represent approximately 35 years of Israel’s natural gas needs at projected 2012 demand rates. Â The capital investment for Tamar is estimated at $2.8 billion gross.
Noble Energy announced the Leviathan prospect as its next planned exploration target in the region, to spud in the fourth quarter 2010. Â Leviathan, offshore Israel in the Rachel and Amit licenses, has gross unrisked mean resources of 16 Tcf of natural gas and a geologic chance of success of 50 percent. Â Leviathan is operated by Noble Energy with an approximate 40 percent working interest. Â Based on its initial interpretation of 2D and 3D seismic data, the Company has estimated the gross unrisked resource potential on its Eastern Mediterranean acreage to be in excess of 30 Tcf.
Development drilling at the Aseng oil project in Equatorial Guinea is progressing and has resulted in total estimated field resources increasing to 220 MMBoe gross, 60 percent of which are liquids. Â Aseng remains on budget and on schedule for first production in 2012. Â At the Company’s Alen discovery (formerly known as Belinda), front-end engineering and design work for the gas-cycling project has commenced with sanction planned for late 2010. Â The Company provided an updated Alen resource estimate of 247 MMBoe gross, with 40 percent being liquids. Â The initial production estimate for Alen is 30 MBbl/d gross (15 MBbl/d net), beginning at the end of 2013. Â Combined, Aseng and Alen are expected to produce up to 30 MBbl/d of liquids, net to Noble Energy, in 2014.
Source: nobleenergyinc, June 3, 2010;