Noble Energy Inc. (NBL:US), the U.S. oil and natural-gas producer with operations from Colorado to the Mediterranean Sea, will record a $118 million exploration expense in the second quarter related to its Deep Blue prospect in the Gulf of Mexico.
The expense comes after Noble and its partners decided to suspend appraisal work at the prospect, the Houston-based company said in a statement today. Some hydrocarbons were found in initial exploration and in later activity, Noble said.
The company’s deep-water Gulf of Mexico output has climbed to about 30,000 barrels of oil equivalent a day, the company said. Oil comprises more than 80 percent of that. Three wells at the Galapagos project in the deep-water Gulf are producing at rates higher than in an earlier forecast, according to today’s statement.
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