Wednesday, 28 December 2011

Noble Energy announces Cyprus natural gas find

Below is the announcement from Noble Energy on the natural gas deposits it’s found in Block 12 (of 13) in Cyprus’ Exclusive Economic Zone. The 5-8 trillion cubic feet mentioned is below some of the more optimistic estimates – the finds in the neighbouring Israeli Leviathan block is double this amount – but it still constitutes a huge find that will enhance Cyprus’ economy and geo-strategic significance, and, of course, unleash a scramble by global gas and oil players to get access to the remaining 12 blocks in the southern sector of Cyprus’ EEZ.

HOUSTON, Dec. 28 – Noble Energy, Inc. (NYSE: NBL) announced today a natural gas discovery at the Cyprus Block 12 prospect, offshore the Republic of Cyprus. The Cyprus A-1 well encountered approximately 310 feet of net natural gas pay in multiple high-quality Miocene sand intervals.

The discovery well was drilled to a depth of 19,225 feet in water depth of about 5,540 feet. Results from drilling, formation logs and initial evaluation work indicate an estimated gross resource range(1) of 5 to 8 trillion cubic feet (Tcf), with a gross mean of 7 Tcf. The Cyprus Block 12 field covers approximately 40 square miles and will require additional appraisal drilling prior to development.

Charles D. Davidson, Noble Energy’s Chairman and CEO, said, “We are excited to announce the discovery of significant natural gas resources in Cyprus on Block 12. This is the fifth consecutive natural gas field discovery for Noble Energy and our partners in the greater Levant basin, with total gross mean resources for the five discoveries currently estimated to be over 33 Tcf. This latest discovery in Cyprus further highlights the quality and significance of this world-class basin.”

Davidson went on to say, “We would like to thank the Government of Cyprus for their productive cooperation and support in achieving an important outcome for the people of Cyprus and Noble Energy. We look forward to working closely with the Government of Cyprus to develop this discovery in a manner that maximizes value for all stakeholders.”

Noble Energy operates the well with a 70 percent working interest. Delek Drilling and Avner Oil Exploration will each have 15 percent, subject to final approval by the Government of Cyprus.

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