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Noble Energy will take 75m write down

Staff writer |
Houston-based Noble Energy will take a 75 million write down for exploration costs after determining that its offshore Scotia well in the Falkland Islands is not commercially viable.

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he well was drilled in 2012 using 2D seismic interpretation but was deemed non-commercial following analysis of 3D seismic data. The well was drilled by the Leiv Eiriksson owned by Norway’s Ocean Rig.

Noble updated its guidance for third quarter exploration expenses to be between 230 and 240 million, including approximately 75 million related to the Scotia well.

Despite the Scotia well decision Noble will continue its Falklands exploration efforts. Noble plans to drill the Humpback prospect following an extensive 3D seismic program over parts of its 10 million acre position in Falklands.

The Humpback prospect is one of multiple stacked fan prospects clustered together in the Fitzroy sub basin. Noble estimates that this group of prospects has a combined estimated gross un-risked resource potential of approximately one billion barrels of oil equivalent. Drilling operations at Humpback are projected to being in the middle of 2015, dependent on rig arrival.

Noble Energy is currently finalizing prospect locations for a second exploration well, planned for later in 2015 following results at Humpback.

Noble Energy operates its licenses offshore the Falkland Islands with a 35% working interest.

“The Falklands provides an opportunity to create another core area for Noble Energy through organic exploration success,” Noble’s vice president of exploration Mike Putnam said.

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