Nicaragua’s First Deepwater Well Disappoints

Noble Energy, Inc. today announced disappointing results from the Paraiso-1 exploration well, located in the Tyra Bank concession area offshore Nicaragua.

The well, which had hydrocarbon shows and found high-quality Tertiary-age carbonate reservoirs, did not encounter an accumulation of hydrocarbons. Located in a water depth of 1,220 feet, the well was drilled to a total depth of 10,415 feet.

Mike Putnam, Vice President, Exploration and Geoscience, commented, “Paraiso-1 was the first deepwater well drilled offshore Nicaragua and tested a new frontier exploration concept for this region. While we are disappointed that the well did not lead to a discovery, there were several positive observations during drilling. The information gathered from this well will be integrated into our regional geologic model to help us assess the remaining exploration potential over our nearly two million acre position offshore Nicaragua.”

Following completion of permanent plugging and abandonment operations at the Paraiso-1 location, the drilling rig will be released. Noble Energy is operator of the well with a 70 percent working interest, subject to final government approvals for the assignment of the remaining interest to other parties.

Noble Energy’s total company fourth quarter 2013 exploration expense is estimated to range from $225 to $265 million, including seismic acquisition and processing, unsuccessful well costs, and other geologic and geophysical expenditures. The fourth quarter exploration expense range indicates full year exploration expense to be around the lower end of the Company’s original guidance range.

[mappress]
November 13, 2013