Noble Energy Sells Certain Greeley Crescent Acreage in DJ Basin for $505 Million
May 03 2016 - 4:05PM
Noble Energy, Inc. (NYSE:
NBL) (“Noble Energy” or
“the Company”) today announced that it has signed a definitive
agreement to divest certain oil and natural gas properties in the
Greeley Crescent area of Weld County, Colorado. The
transaction includes the sale of approximately 33,100 primarily
undeveloped net acres within the DJ Basin to Synergy Resources
(NYSE: SYRG) for $505 million. The effective date of the
transaction is April 1, 2016, and closing is expected to occur as
early as June 2016, subject to customary terms and conditions.
David L. Stover, Noble Energy’s Chairman,
President and CEO, commented, “The Greeley Crescent sale signifies
Noble Energy’s continued portfolio management efforts and
accelerates the value of these assets to the Company. This
transaction also highlights the strong value of undeveloped acreage
throughout the DJ Basin. Our DJ Basin development activities are
currently focused on Wells Ranch and East Pony, where we have a
deep inventory of long lateral drilling opportunities in an oily
part of the basin. In addition, our existing infrastructure in
these areas provides a competitive advantage. Combined with
other asset sales, we have now announced transactions totaling more
than $775 million in proceeds this year, which further enhances our
flexibility to strengthen our investment-grade balance sheet and
accelerate activity levels once justified by higher commodity
prices.”
Average daily production on the assets divested
is approximately 2,400 barrels of oil equivalent per day, net to
Noble Energy, with approximately two-thirds operated and one-third
non-operated. The acreage and production sold represent
approximately eight percent and two percent, respectively, of the
Company’s totals in the DJ Basin. Several hundred vertical wells
have been drilled on the assets by multiple operators. Noble Energy
has drilled 14 horizontal wells on the acreage over the past four
years. Post transaction close, Noble Energy’s DJ Basin position
will total 363,100 net acres, including 111,600 combined acres in
Wells Ranch/East Pony and 31,800 acres remaining in the Greeley
Crescent area.
The acreage included in the transaction remains
dedicated to Noble Energy’s midstream business for oil and water
gathering, as well as freshwater services.
A map related to the transaction can be found on
the ‘News Releases’ page under ‘Investors’ on the Company’s website
at www.nobleenergyinc.com.
Tudor, Pickering, Holt & Co. acted as the
lead financial advisor to Noble Energy on the transaction.
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 Statements
This 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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