Friday, September 3, 2010

Noble Energy, Inc - Niobrara Shale Update

By Andrea:

Noble Energy, Inc. (NBL) is beginning to make a huge impact in the Niobrara Shale and they will continue their growth in 3Q 2010:

To date, Noble Energy Inc. (NBL) has drilled 10 horizontal Niobrara wells in Wattenberg and two in the Grover area about 20 miles northeast of Wattenberg. Eight of the Wattenberg wells are now on production with two awaiting completion operations. As they continue to step out to the north and the eastern portions of the Wattenberg field, Noble Energy is encouraged by the early flow back in liquid content of our new wells. Recent initial 24 hour rates have ranged from 580 to 845 barrels of oil equivalent per day with a 70% to 90% liquid content.

Starting in September, the company expects to drill a few more wells closer to the Gemini area, around the core of the field and near existing vertical producers. The Gemini well has now produced over 100,000 barrels of oil equivalent in just four months, and is currently producing about 600 barrels of oil equivalent per day.

In the Grover area, the first two horizontal wells were recently drilled and are undergoing completion operations. Noble Energy will keep one of the two current horizontal rigs in Wattenberg the rest of the year and the other rig will move between Wattenberg and the Grover area.

In southern Wyoming, the company is also bringing in an additional rig to drill three horizontal Niobrara wells starting in the third quarter. Overall, their horizontal Niobrara program is on target, with about 30 total wells drilled in the play by year end. Along with the ongoing 3D seismic activity, production monitoring and additional reservoir evaluation work, Noble Energy should be in a good position by the end of the year to assess the expansion plans for this area. Overall, the company is currently operating 13 rigs in their onshore US program. Five of those rigs are conducting horizontal operations and eight are drilling vertical wells.

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