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Noble sells GOM shelf assets to Coldren
Noble Energy has jumped on the bandwagon of producers ridding themselves of aging oil and gas properties on the Gulf of Mexico’s continental shelf.
The Houston-based E&P independent said May 16 that it agreed to sell nearly all of its shelf assets, including 27 million barrels of oil equivalent reserves, to privately owned Coldren Resources LP for $625 million. The sale is expected to close by June 30.
However, Noble said it would retain its interest in the Main Pass area of the shelf, which is currently undergoing repair work after suffering significant hurricane damage in 2004 and 2005. Noble said it would continue exploration and production activities in the deepwater Gulf and onshore Gulf Coast.
“The sale of our Gulf of Mexico shelf assets is another significant step in focusing Noble Energy’s future investments and growth in the most prospective areas worldwide,” said Charles Davidson, Noble’s chairman, president and chief executive officer.
In April BP agreed to sell its remaining producing properties on the shelf to E&P independent Apache for $1.3 billion. The major said the assets no longer met BP’s worldwide investment standard.
Superior Energy Services a backer The Noble-Coldren deal was partially backed by Louisiana-based Superior Energy Services, which said in a press release it acquired a 40 percent stake in Coldren in order to give its core businesses the first right to provide services, rental tools and liftboats required by Coldren and to diversify its property portfolio managed by a subsidiary.
The sale includes Noble production of about 5,000 barrels of oil per day and 90 million cubic feet of natural gas per day, net to Noble Energy, for a combined total of about 20,000 barrels of oil equivalent per day. As of March 1, Noble’s proved reserves for the assets being sold totaled 7 million barrels of oil and 120 billion cubic feet of natural gas, or a combined total of 27 million barrels of oil equivalent.
After-tax cash proceeds from the sale are expected to be approximately $525 million, Noble said, adding that it expects to record a pre-tax gain from the sale of about $270 million.
—Ray Tyson
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