Noble Energy Abandons Well in Gulf of Mexico

   By Joshua Jamerson 
 

Noble Energy Inc. said it would abandon one well in the gulf of Mexico and move on to another, as drilling operations at its Silvergate site didn't find commercial deposits of oil and gas.

The oil and natural gas producer said the Silvergate exploration well, which it operated with a 50% working interest, is being plugged. The company said its overall exploration expense in the first quarter is now expected to be toward the higher end of its previously-given guidance range of $130 million to $170 million.

Noble said it would start drilling an appraisal well at its Katmai oil discovery site, testing resource potential beyond the 40 million to 60 million barrels of oil equivalent that has already been discovered. Noble, which operates Katmai and has a 38% working interest in the appraisal well, said it expected results in the early part of the fourth quarter.

Potential development at Katmai would likely involve a subsea tie-back into existing infrastructure, the company said.

The company is expected to report first-quarter results on May 4.

Noble shares are down 38% in the past 12 months.

Write to Joshua Jamerson at [e-mail]

(END) Dow Jones Newswires

April 08, 2016 09:30 ET (13:30 GMT)

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