HOUSTON, May 14 /PRNewswire-FirstCall/ -- Noble Energy, Inc. (NYSE:
NBL), at its annual analyst meeting today, will provide updated guidance,
global resource estimates, and results from its ongoing drilling program in
Equatorial Guinea.
Updated Guidance
Noble Energy's total sales volumes for 2008 are now estimated to
average between 210 and 220 thousand barrels of oil equivalent per day
(MBoepd). Using the midpoint of the new guidance, this represents a two
percent increase from the original estimate's midpoint of 210 MBoepd and a
nine percent increase from 2007 after adjusting for the Argentina asset
sale. The incremental volumes over prior guidance are primarily related to
better than expected performance from deepwater Gulf of Mexico development
projects, enhanced growth in the Rocky Mountains, as well as the impact of
the accelerated development of phase two at Dumbarton in the North Sea and
increased natural gas sales in Israel.
Noble Energy also confirmed its six to 10 percent annual compounded
organic growth target through 2012. There will be minimal production impact
during this period from its West Africa discoveries, which are expected to
begin production within the 2012 to 2014 timeframe. Capital requirements
through 2012 will average approximately $2 billion per year, which includes
the Company's updated 2008 capital budget and anticipated development
spending for its West Africa discoveries.
Accompanying the change in production guidance, Noble Energy is
adjusting several of its cost estimates for 2008. Estimated oil and gas
lease operating expenses were lowered to range from $4.20 per barrel of oil
equivalent (Boe) to $4.70 per Boe, down from $4.30 to $4.80 per Boe.
Depreciation, depletion, and amortization expense is now estimated to range
from $10.30 per Boe to $10.90 per Boe, down from $10.40 to $11 per Boe.
Other guidance changes, primarily interest expense and taxes, are included
in more detail at the end of this news release.
Global Resource Potential
The Company estimates that its net unrisked resource potential has
increased approximately 70 percent from its 2007 estimate to 5.3 billion
barrels of oil equivalent. The increase comes from the combination of an
increased exploration portfolio and expanded resource development programs.
Equatorial Guinea Drilling Program Update
In addition, the Company provided an update on its drilling activities
in Equatorial Guinea. The 'I-5' Benita oil appraisal well, designed to
determine downdip reservoir limits as well as provide an opportunity to
flow test the oil zone, was successfully drilled to a total depth of 10,088
feet (3,075 meters). Drilling results encountered approximately 42 feet (13
meters) of net oil pay, defined the water-oil contact, and moved the lowest
known oil down structure approximately 28 feet (9 meters). Noble Energy is
currently preparing to flow test the well, after which the rig will proceed
to drill a Block "I" Miocene prospect named Diega. The Company has also
reached total depth on the Felicita prospect in Block "O" and has
identified an apparent gas condensate bearing sand with anticipated yields
similar to the Belinda discovery.
Charles D. Davidson, Noble Energy's Chairman, President, and CEO said,
"Today's meeting provides an opportunity to highlight the tremendous growth
in opportunities and resource inventory that we have experienced over the
past year. Our 2008 performance continues to exceed our expectations.
Production remains strong, costs well-managed and our exploration program
is off to a great start with two more successful wells in Equatorial
Guinea. As we look beyond this year, we are extremely excited about our
prospects for growth and the potential to deliver value to our investors."
Analyst Meeting Webcast
Noble Energy's 2008 annual analyst meeting will be available today via
live audio webcast at 8 a.m. Eastern Time. To listen, log on to
http://www.nobleenergyinc.com and click on the Investor Relations tab. The
analyst meeting replay will be available until August 14, 2008. To access
the replay, go to http://www.nobleenergyinc.com and click on the Investor
Relations tab.
Noble Energy is one of the nation's leading independent energy
companies and operates throughout major basins in the United States
including Colorado's Wattenberg field and Piceance basin, the Mid-continent
region of western Oklahoma and the Texas Panhandle, the San Juan basin in
New Mexico, the Gulf Coast and the deepwater Gulf of Mexico. In addition,
Noble Energy operates internationally in China, Ecuador, the Mediterranean
Sea, the North Sea, and West Africa (Equatorial Guinea and Cameroon). Visit
Noble Energy online at http://www.nobleenergyinc.com.
This news release includes projections and other "forward-looking
statements" within the meaning of the federal securities laws. Any such
projections or statements reflect Noble Energy's current views about future
events and financial performance. No assurances can be given that such
events or performance will occur as projected, and actual results may
differ materially from those projected. Important factors that could cause
the actual results to differ materially from those projected include,
without limitation, volatility in oil and gas prices, 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 action, the
ability of management to execute its plans to meet its goals and other
risks inherent in Noble Energy's business that are detailed in its
Securities and Exchange Commission filings.
The United States Securities and Exchange Commission permits oil and
gas companies, in their filings with the SEC, to disclose only proved
reserves that a company has demonstrated by actual production or conclusive
formation tests to be economically and legally producible under existing
economic and operating conditions. We use certain terms in this news
release, such as "resource estimates," "resource potential" and "resource
inventory," that the SEC's guidelines strictly prohibit us from including
in filings with the SEC. Investors are urged to consider closely the
disclosures and risk factors in our Forms 10-K and 10-Q, File No. 1-07964,
available from Noble Energy's offices or website,
http://www.nobleenergyinc.com. These forms can also be obtained from the
SEC by calling 1-800-SEC-0330.
Noble Energy, Inc.
2008 Updated Volume Guidance
As of May 14, 2008
CRUDE OIL AND CONDENSATE (MBpd)
-- United States 38 - 44
-- West Africa 13 - 15
-- West Africa - equity method investment 1 - 2
-- North Sea 8 - 12
-- Other 3 - 4
NATURAL GAS (MMcfpd)
-- United States 400 - 430
-- West Africa 210 - 240
-- Israel 110 - 120
-- North Sea 5 - 10
-- Ecuador 20 - 25
NATURAL GAS LIQUIDS (MBpd)
-- United States 8 - 10
-- West Africa - equity method investment 5 - 6
COST AND EXPENSES
-- Oil and gas lease operating $4.20 - $4.70 per Boe
-- Transportation $0.60 - $0.80 per Boe
-- Depreciation, depletion and amortization $10.30 - $10.90 per Boe
-- Production and ad valorem taxes 4.0 - 4.5% of oil, gas,
and ngl revenues
-- Exploration $240 - $310 million
-- General and administrative $205 - $250 million
-- Interest (net) $70 - $85 million
OTHER ITEMS
-- Effective tax rate 32 - 36%
-- Deferred tax ratio 30 - 40%
-- Outstanding shares - diluted 174 - 176 million
SOURCE Noble Energy, Inc.
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Related links:
http://www.nobleenergyinc.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20021210/NBLLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
David Larson, +1-281-872-3125,
dlarson@nobleenergyinc.com, or Brad Whitmarsh, +1-281-872-3187,
bwhitmarsh@nobleenergyinc.com, both of Noble Energy, Inc.
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