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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (178684)	6/19/2013 9:21:05 AM
From: Dennis Roth	1 Recommendation Recommended By LoneClone Read Replies (2) \| Respond to of 206160

Noble Energy Inc (NBL) Alert: Gunflint Appraisal Results In Line With Expectations 14 June 2013 ¦ 8 pages ir.citi.com Gunflint Appraisal Results Confirm Gross Resource Of 65-90 MMBOE... – Noble announced that the second appraisal well at its Gunflint (NBL 31% WI) discovery in the offshore the Gulf of Mexico encountered 109 feet of net pay within the primary target. Appraisal results confirm an estimated gross resource range of 65-90 MMBOE in the primary structure, which was in line with expectations. The Mississippi Canyon 992 #1 well, located one mile west of the original discovery well (see Figure 1), was drilled to a total depth of ~32,800 feet and will be suspended for future use once operations are completed. Commercial hydrocarbons were not encountered in a deeper objective but additional exploration potential remains in an adjacent three-way structure to the north. Further, the appraisal results solidify plans for a subsea tieback development with sanctioning expected later this year. Along with Big Bend, Noble now has two projects in the deepwater Gulf of Mexico with first production expected by the end of 2015. ...With An Estimated Value of ~$0.60-$0.80 Per Share – Based on the estimated 65-90 MMBOE gross resource and ~$12.00/BOE of net present value, we value Gunflint at ~$200-300mm, or ~$0.60-0.80 per share to Noble, net of royalties. We would note that the net cost of drilling the Gunflint appraisal was ~$15mm, which will be expensed in Q2’13. Our total net risked sum-of-the-parts NAV for Noble remains ~$70.00 per share. Troubadour Is Next On The Gulf Of Mexico Drilling Slate – Following Gunflint, Noble plans to move the drilling rig to the deepwater Gulf of Mexico Troubadour prospect (NBL 88% WI), which offsets its Big Bend discovery. Troubadour should then reach total depth (TD) in late Q3’13. Meanwhile, following the Karish well results offshore Israel last month (see our May 22nd note), the Ensco 5006 rig has moved to Cyprus to drill the Aphrodite 2 appraisal well (NBL 70% WI) with results expected within 3-4 months. Elsewhere, results are expected from the Diega appraisal well offshore West Africa in Q3’13, the Paraiso prospect offshore Nicaragua in Q3’13, and Noble’s N.E Nevada tight oil play by YE13. Also, the Alen field development offshore Equatorial Guinea is on track for first oil in Q3’13. Finally, following rig arrival at YE13, Noble will pursue a deep oil test at Leviathan. See Figure 2 for a summary of the company’s upcoming exploration prospects. Reiterate Buy Rating – And $65.00 per share 12-month price target.