Noble Energy Further Enhances Wells Ranch Position Through DJ Basin Acreage Trade
16 June 2016 - 9:00PM
Noble Energy, Inc. (NYSE:
NBL) (Noble Energy or
the Company) announced today that the Company has signed definitive
agreements with PDC Energy, Inc. (Nasdaq: PDCE) (PDC Energy) to
exchange certain acreage in the greater Wattenberg area of northern
Colorado. Noble Energy will receive approximately 11,700 net acres
in the Company’s Wells Ranch development area in exchange for
approximately 13,500 net acres primarily out of the Company’s
Bronco area, located southwest of Wells Ranch. The difference
in net acreage exchanged is driven primarily by variances in net
revenue interest. The transaction is expected to close early in the
fourth quarter of 2016, subject to title examination and other
adjustments.
Charles J. Rimer, Noble Energy’s Senior Vice
President, U.S. Onshore, commented, “This strategic acreage
exchange expands our Wells Ranch acreage position by approximately
20 percent and provides substantial operating synergies and cost
efficiencies for both ourselves and PDC Energy. The trade
simplifies long term development of the DJ Basin, adds significant
incremental value to Noble Energy and optimizes our existing
infrastructure. In addition, the new acreage to Noble Energy
materially increases long lateral drilling opportunities within our
Wells Ranch development area. Further, the higher contiguous
acreage positions for both companies should result in fewer surface
locations, reducing the above ground impact.”
The acreage exchange includes leasehold only.
Existing production on the acreage will remain with each party.
Following the closing of the acreage exchange, Noble Energy’s total
Wells Ranch development area net acreage will increase to
approximately 78,100 acres. A map related to the transaction can be
found on the ‘News Releases’ page under ‘Investors’ on the Noble
Energy’s website at www.nobleenergyinc.com.
Greeley Crescent Acreage Sale UpdateNoble Energy
received $486 million on June 14, 2016, through an initial closing
of the sale of approximately 33,100 net acres within the Greeley
Crescent area to Synergy Resources. The remaining funds, estimated
to be $19 million, will be received in a final closing expected to
occur in the fourth quarter of 2016. The acreage included in the
transaction remains dedicated to Noble Energy’s midstream business
for oil and water gathering, as well as freshwater services.
Noble Energy (NYSE: NBL) is an
independent oil and natural gas exploration and production company
with a diversified high-quality portfolio of both U.S.
unconventional and global offshore conventional assets spanning
three continents. Founded more than 80 years ago, the company is
committed to safely and responsibly delivering our purpose:
Energizing the World, Bettering People’s Lives®. For more
information, visit www.nobleenergyinc.com.
Forward Looking StatementsThis news release
contains certain “forward-looking statements” within the meaning of
federal securities law. Words such as “anticipates”,
“believes”, “expects”, “intends”, “will”, “should”, “may”, and
similar expressions may be used to identify forward-looking
statements. Forward-looking statements are not statements of
historical fact and reflect Noble Energy’s current views about
future events. They may include estimates of oil and natural
gas reserves, estimates of future production, assumptions regarding
future oil and natural gas pricing, planned drilling activity,
future results of operations, projected cash flow and liquidity,
business strategy and other plans and objectives for future
operations. No assurances can be given that the
forward-looking statements contained in this news release will
occur as projected and actual results may differ materially from
those projected. Forward-looking statements are based on
current expectations, estimates and assumptions that involve a
number of risks and uncertainties that could cause actual results
to differ materially from those projected. These risks
include, without limitation, the volatility in commodity prices for
crude oil and natural gas, the presence or recoverability of
estimated reserves, the ability to replace reserves, environmental
risks, drilling and operating risks, exploration and development
risks, competition, government regulation or other actions, the
ability of management to execute its plans to meet its goals and
other risks inherent in Noble Energy’s business that are discussed
in its most recent annual report on Form 10-K and in other reports
on file with the Securities and Exchange Commission. These reports
are also available from Noble Energy’s offices or website,
http://www.nobleenergyinc.com. Forward-looking statements are
based on the estimates and opinions of management at the time the
statements are made. Noble Energy does not assume any
obligation to update forward-looking statements should
circumstances, management’s estimates, or opinions change.
Investor Contacts
Brad Whitmarsh
(281) 943-1670
brad.whitmarsh@nblenergy.com
Megan Repine
(832) 639-7380
megan.repine@nblenergy.com
Media Contacts
Reba Reid
(713) 412-8441
media@nblenergy.com
Paula Beasley
(281) 876-6133
media@nblenergy.com
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