USA: Noble Energy Reports Record Sales Volume in 1Q

Noble Energy, Inc., a Houston based independent energy company engaged in worldwide oil and gas exploration and production, reported today first quarter 2012 net income of $263 million, on revenues of $1,165 million. Net income for the first quarter 2011 was $14 million,  on revenues of $899 million. 

The company, with core operations onshore in the U.S., primarily in the DJ Basin and Marcellus Shale, in the deepwater Gulf of Mexico, offshore Eastern Mediterranean, and offshore West Africa, reported that net cash provided by operating activities was $741 million, and capital expenditures were $963 million.

In the first quarter, the company achieved record sales volume of 243 thousand barrels of oil equivalent per day (MBoe/d), up 10 MBoe/d over the previous record reported in the fourth quarter of 2011. Among other quarterly highlights Noble noted that gross daily crude oil production from the Aseng field, offshore Equatorial Guinea, achieved 60 thousand barrels per day (MBbl/d). It has also highlighted the signing of natural gas sales contract with Israel Electric Corporation for 2.7 trillion cubic feet (Tcf) from Tamar offshore field. with expected gross revenues of $18 billion. The Tamar field is expected to come on stream next year. Furthermore, Noble highlighted the Tanin gas discovery offshore Israel with estimated gross mean resources of 1.2 Tcf as one of the major accomplishments in 1Q 2012.

Charles D. Davidson, Noble Energy’s Chairman and CEO, commented, “The first quarter confirmed the strong growth we have been projecting for this year. The real value driver for the outstanding results this quarter was the impressive increase in crude oil volumes and related revenues which reflect the exceptional operational performance at the Aseng field and drilling results in the DJ Basin. The impact of our crude oil and liquids sales is evident as it accounted for over 80 percent of our revenue for the quarter. We are looking forward to the additional oil and liquids production that will be coming online in the second quarter with the startup of Galapagos in the Gulf of Mexico and the expansion of horizontal activity into Northern Colorado where we are realizing the highest crude oil content in the Niobrara play.”

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Offshore Energy Today Staff, April 27, 2012
Tamar has an estimated 9.71 trillion cubic feet of gas, and commercial production is due to begin next year.