Noble Energy fails at Silvergate. Moves rig to Katmai well

Noble Energy, a U.S.-based offshore exploration company, has failed to find commercial hydrocarbons at its exploration well in the U.S. Gulf of Mexico.

The company on Friday said its Silvergate exploration well, drilled on Mississippi Canyon Block 339, was being plugged and abandoned. Noble Energy operated the well with a 50 percent working interest.

Noble Energy said that total exploration expense for the company in the first quarter of 2016 is now expected to be towards the upper end of the previously-provided $130 to $170 million guidance range.

Upon completion of operations at Silvergate, the rig will move to Green Canyon Block 39 and start drilling an appraisal well at the Katmai oil discovery.

The appraisal well is designed to test additional gross resource potential beyond the 40 to 60 million barrels of oil equivalent already discovered. Results from the Katmai appraisal well are expected in the early part of the fourth quarter of 2016. Potential development at Katmai would likely involve a subsea tie-back into existing infrastructure. Noble Energy operates Katmai and has a 38 percent working interest in the appraisal well.

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