Noble Energy Increases Production with Less Capital

Noble Energy Increases Production with Less Capital

Noble Energy (NYSE: NBL) continued to show discipline in the first quarter of 2016 coming in under the low end of their CAPEX guidance of $400 to $500 million at $374 million for the quarter. Cost cutting efforts have helped the company grow production while spending less. Noble exceeded the company’s production guidance at 416,000 Boe/d for the first quarter.

Noble_Frac_Count_ALL_Basins

IP-Rates Increase by 30% in the DJ-Niobrara

First quarter production in the DJ basin totaled 118,000 Boe/d which has been attributed to the switch to slickwater completions and higher proppant concentrations. Noble continues to focus operations in Wells Ranch and East Pony where they see better opportunities for longer laterals. During the first quarter they averaged a lateral length of 5,860 feet on 22 wells. Noble has seen shorter drilling times and a reduction in costs with the implementation on a monobore well design. The majority of these completions were done by Halliburton. The chart below shows the distribution of proppant in tons used in each well.

noble-energy-DJ-basin

Noble made a move to gain liquidity selling assets on the west side of their acreage in the basin, anticipating $505 million in proceeds. This represents only about 8% of Nobles acreage in the basin.

Testing Continues in the Permian & Eagle Ford

During the first quarter Noble continued to test new completion designs in the Permian and Eagle Ford, all of which were completed by Halliburton. In the Eagle Ford Noble is testing different cluster spacing techniques with the best performing wells having tighter clusters during the quarter. The two completions in Reeves county in the first quarter used laterals which were shorter then the average in the Permian with the Soapy Smith well being the shortest at only 2,790 feet.

 

Find operator capex plans, drilled uncompleted wells, and completion trends with Energent’s research tools

 

 

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