Noble Energy announces acreage exchange in DJ basin
HOUSTON -- Noble Energy, Inc. has announced the closing of an acreage exchange with Anadarko Petroleum Corporation in the greater Wattenberg area of northern Colorado. Each party contributed approximately 50,000 net acres to the exchange. The effective date of the transaction is January 1, 2013.
David L. Stover, Noble Energy's president and COO, commented, "This strategic transaction will create numerous synergies for both Noble Energy and Anadarko and allows us to maximize the value of this premier oil asset, as acreage is consolidated in key operating areas. As we move forward with our integrated development plans within the DJ basin, we expect to realize significant efficiency improvements including centralized field facilities, streamlined operations and reduced land work. The large contiguous acreage blocks will provide the opportunity to optimize drilling activities and add more extended-reach lateral wells to the program."
Noble Energy was reimbursed $202 million for capital spent to drill and complete wells on the conveyed acreage. This was partially offset by other adjustments in determining the $105 million of cash the company received at closing.
The exchange will lower net production from recent levels by approximately 8,000 barrels oil equivalent per day, almost entirely related to the recently drilled wells. This short-term reduction in production is anticipated to be quickly offset with operational efficiencies and cost savings. For 2014, Noble Energy’s DJ basin volumes are still expected to grow at a rate of at least 20 percent.