Noble Energy (formerly Rosetta)

Noble Energy entered into the Eagle Ford Shale with the acquisition of Rosetta Resources – a leading producer in the Eagle Ford Shale – in the third quarter of 2015. Entry into the Eagle Ford Shale adds diversity and optionality to our onshore portfolio and leverages our onshore technical and operational expertise. Noble Energy is well-positioned in the Eagle Ford Shale with 50,000 net acres primarily in Dimmit and Webb counties.

Together with the Permian Basin, the Eagle Ford Shale increased reserves and production by approximately 20 percent. We continue to improve well performance in this unconventional play by applying best practices from the DJ Basin and Marcellus Shale.

 

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Noble Energy (Rosetta Resources) Eagle Ford Shale Quarterly Commentary

August 2016

Record quarterly sales volumes of 74 MBoe/d were achieved in the second quarter of 2016, an increase of 17 percent from the second quarter of 2015 on a pro-forma basis and up 23 percent from the first quarter of 2016.  Liquids represented 62 percent of the total (25 percent crude oil and condensate and 37 percent NGLs), while natural gas accounted for the remaining 38 percent.  Eagle Ford production made up 90 percent of the volumes with the Permian delivering the remaining 10 percent.

Highlights include:

  • The Company brought one well online in the Wolfcamp A interval in the Permian’s Delaware Basin.  The Calamity Jane 2101H well, with a lateral length of 4,859 feet, was completed using slickwater and 3,000 pounds of proppant per lateral foot.  To date, the well has achieved a maximum IP-30 rate of 2,541 Boe/d (or 523 Boe/d per thousand lateral feet) with 57 percent oil.  On a normalized basis (5,000 foot lateral well), the well is outperforming the 700 MBoe type curve by more than 75 percent.
  • In the second quarter, Noble Energy commenced production on seven Lower Eagle Ford wells in the Gates Ranch area.  Six of the wells were located in South Gates Ranch and had a lateral spacing of approximately 500 feet, an average lateral length of 7,240 feet, and an average IP-30 of 3,954 Boe/d (or 547 Boe/d per thousand lateral feet).  The wells had proppant concentrations of approximately 2,000 pounds per lateral foot and cluster spacing of 40 feet.  On average and normalized for lateral length, the IP-30 rates have outperformed a 3 MMBoe type curve (for a 5,000 foot lateral) over their first 30 days of production.
  • In late March, the Company brought on production six additional Lower Eagle Ford wells in the Gates Ranch area.  Five of the wells were located in South Gates Ranch and tested lateral spacing of 1,000 feet or more, had an average lateral length of 4,570 feet, and resulted in an average IP-30 rate of 3,993 Boe/d (or 878 Boe/d per thousand lateral feet).  On average, the wells had proppant concentrations of over 2,000 pounds per lateral foot and cluster spacing of 20 feet.  Normalized for lateral length, these wells have outperformed a 3 MMBoe type curve (for a 5,000 foot lateral) by approximately 60 percent over the first 90 days.
  • There were 46 wells drilled but uncompleted (including 31 in the Eagle Ford and 15 in the Delaware) at the end of the quarter.

May 2016

Noble Energy announces solid first quarter with Eagle Ford assets bumping up the company’s production. The company’s total volumes for the first quarter of 2016 increased to 416 thousand barrels of oil equivalent per day (MBoe/d), up 31 percent from the first quarter of 2015. A portion of this increase is due to the production from the 50,000 acres they acquired in the Eagle Ford last year.

Noble continues to develop their newly-acquired assets in the Eagle Ford and are seeing promising results and ‘unlocking additional resource potential’. They have refined completion techniques leading to improved results. Other first quarter Eagle Ford highlights include:

  • Production volumes averaged more than 60 MBoe/d
  • Drilled two operated wells to total depth
  • Drilling times down 20%
  • Commenced production on eight Lower Eagle Ford wells
  • 33 wells drilled but uncompleted

November 2015

Production volumes for the Eagle Ford and Permian for 2015 Q3 averaged 54 MBoe/d from July 21 to the end of the third quarter of 2015 (which is equivalent to 42 MBoe/d on average for the full quarter).  Approximately 84 percent of the volumes were from the Eagle Ford assets and 16 percent were contributed from the Permian.  Liquids represented 63 percent of total volumes (crude oil and condensate represented 29 percent and NGLs were 34 percent), while natural gas accounted for 37 percent.

Highlights since closing the merger include:

  • Drilled eight operated wells to total depth, including seven Lower Eagle Ford wells and one Wolfcamp A well in the Delaware Basin (Permian).
  • Realized a substantial reduction in the spud to rig release timing in both areas as a result of various operational enhancements.  In the Eagle Ford, spud to rig release times have been reduced to approximately eight days for a 5,000 foot lateral, down approximately 30 percent from prior 2015 activity on these assets.  The well drilled in the Delaware had a lateral length of approximately 5,000 feet and was drilled in approximately 10 days less time than prior activity on these assets.
  • Commenced production on five operated Lower Eagle Ford wells.  The two most recent wells represent Noble Energy’s initial designed and executed completions.  These wells were drilled with 950 foot effective lateral spacing and were completed with 20 foot cluster spacing and approximately 2,000 pounds of proppant per lateral foot.  Each of the two wells, normalized to a 5,000 foot lateral length, is materially outperforming the 3 MMBoe estimated ultimate recovery type curve for the area.
  • Based on the current drilling and completion activity plans, the Company estimates exiting 2015 with approximately 50 wells drilled but uncompleted (including 35 wells in the Eagle Ford and 15 wells in the Delaware).  Noble Energy anticipates exiting 2015 with two rigs operating inTexas, one in the Eagle Ford and one in the Delaware Basin.

August 2015

“Mid-year 2015 marks a strategic inflection point for Noble Energy. We have added new positions in some of the best areas of the Eagle Ford and Delaware Basins, and the integration of these assets is on track. At the same time, important infrastructure expansions in the DJ Basinprovide the new capacity needed to support optimal production. We have also worked with the government of Israel on establishing a regulatory framework for natural gas development, which is progressing toward final approval.”

July 2015

Noble Energy, Inc. announced that the stockholders of Rosetta Resources Inc. (“Rosetta”) overwhelmingly approved the merger of Rosetta into a subsidiary of Noble Energy. Highlights of the acquisition for Noble Energy include:

  • Approximately 50,000 net acres in the Eagle Ford Shale and 56,000 net acres in the Permian (46,000 in the Delaware Basin and 10,000 in the Midland Basin)
  • Year-end 2014 proved reserves of 282 million barrels of oil equivalent
  • Current production of approximately 63 thousand barrels of oil equivalent per day (second quarter 2015 average)
  • More than 1,800 gross horizontal drilling locations identified for development, with net unrisked resource potential of approximately one billion barrels of oil equivalent
  • Noble Energy anticipates more than 15 percent annual production growth to an average of more than 100 thousand barrels of oil equivalent per day in 2018
  • Substantial operational synergies expected across the combined onshore U.S. portfolio (DJ Basin, Marcellus Shale, Eagle Ford Shale, Permian)

May 5, 2014

Daily production from the Eagle Ford was 50 mboe/d in the first quarter, an increase of seven percent from the prior year and four percent versus the prior quarter. Rosetta operated five to seven rigs in the Eagle Ford area during the first quarter. Capital spending included $258 million for drilling and completion activity in the Eagle Ford shale. During the quarter, 35 wells were drilled and 39 completed, of which 32 were brought online. At the end of the quarter, 57 drilled wells were awaiting completion, down from 61 in the prior quarter.

Since beginning operations in the Eagle Ford area, Rosetta has completed 244 gross horizontal wells as of March 31, 2014. During the second quarter of 2014, the company expects to complete 25 to 30 Eagle Ford wells and continue to operate four to five rigs in the play, including two to three rigs in the Gates Ranch area.

November 7, 2012

During Q3 of 2012, Rosetta made capital investments of $188.4 million, drilling 25 gross wells in the Eagle Ford shale with a 100 percent success.  16 wells were completed. Five rigs were operated during the quarter.

Daily Eagle Ford Shale production grew 13 percent from Q2 of 2012, increasing from 32.2 mboe/d to 36.5 mboe/d.

Rosetta is currently conducting development drilling activities in four areas of the Eagle Ford shale.  In the Gates Ranch area, 15 gross wells were drilled and 12 were completed during the third quarter. Favorable well performance continues at 55-acre spacing. Approximately 344 of the estimated 428 Gates Ranch well locations remain to be completed.

Three oil wells were drilled on the Klotzman lease located in the Karnes Trough area. A total of eight Klotzman wells are currently on production and tied into the dedicated crude oil gathering, storage, and trucking terminal located in DeWitt County, Texas.

Drilling and completion activities are in progress on the central Dimmit County leases and at Briscoe Ranch where the first three-well pad was completed during the third quarter. Those three wells continue to perform in line with the recently released type curve for Briscoe Ranch. In the central Dimmit County area, Rosetta successfully tested its Lasseter & Eppright acreage, one of three leases on an 8,100-acre tract. Rosetta is the operator and holds a 100 percent working interest in the exploratory well. The Lasseter & Eppright 1 well is located in the oil window and was completed with a 5,404 ft lateral and 15 frac stages. The well was brought on-line on September 23, 2012 and tested at a seven-day gross stabilized rate of 667 b/d of oil, 1.8 mmcfd of residue gas, 262 b/d of NGLs for an equivalent rate of 1,228 boe/d.

As of September 30, 2012, Rosetta had completed a total of 107 horizontal Eagle Ford wells. About 11 percent of the Company’s identified Eagle Ford inventory is drilled and on production. At the end of the third quarter, 28 drilled wells were awaiting completion, 24 of which were drilled during the third quarter. Rosetta plans to complete 15 to 20 Eagle Ford wells during the fourth quarter and continue to operate five rigs in the play, including two to three rigs at Gates Ranch.

August 7, 2012

Production from the Eagle Ford shale grew 6 percent from the first quarter of 2012, increasing from 30.4 MBoe/d to 32.2 MBoe/d. The area accounted for 96 percent of Rosetta’s total production.

Rosetta has been evaluating Gates Ranch well-spacing performance in several areas of the lease with wells spaced from 425 to 565 feet apart, or 50 to 65 acres per well. The down-spaced areas continue to perform without interference. As a result, Rosetta has begun drilling its Gates Ranch program with wells spaced 475 feet apart or on roughly 55-acre spacing, a change from the previous 565 feet or 65-acre spacing. This increased well density will result in the ultimate development of roughly 428 wells of which an estimated 356 wells remain to be completed, representing a 29 percent growth in project inventory at Gates Ranch. Based on Rosetta’s current evaluation, the estimated ultimate recovery (“EUR”) of the down-spaced wells is projected to be approximately 1.67 million barrels of oil equivalent (“MMBoe”) gross per well or fully incremental reserves as compared to the original 100-acre spacing assumption.

Approximately one-half of Rosetta’s 2012 Eagle Ford activity is concentrated in areas outside of Gates Ranch. Drilling and completion operations are ongoing in the Karnes Trough, Briscoe Ranch, and central Dimmit County areas. During the second quarter, the Company began development at Briscoe Ranch with the drilling of the first three-well pad and completion activity is underway. Based on production data from the October 2011 Briscoe Ranch discovery well, the EUR is projected to be approximately 890 thousand barrels of oil equivalent (“MBoe”) gross per well (24% oil/36% NGLs) with 68 total wells to be developed. Utilizing this EUR, one typical Briscoe Ranch well has a before income tax net present value discounted at 10 percent (“BFIT NPV10″) of $6.9 million after capital recovery, assuming an oil price of $85 per barrel.

During the second quarter in the Karnes Trough area, four Klotzman oil wells were drilled and six were completed. A total of eight wells are currently on production. The average EUR estimate for Klotzman is approximately 665 MBoe gross per well (68% oil/13% NGLs) yielding a BFIT NPV10 of approximately $12.1 million per well after capital recovery, assuming an oil price of $85 per barrel.

In late July 2012, Rosetta began operations from its newly constructed crude oil gathering, storage, and trucking terminal located in DeWitt County, Texas. The facility will ultimately provide 10,000 to 12,000 barrels per day (“Bbls/d”) of capacity for the Klotzman oil lease in the Karnes Trough area. Additionally, Rosetta has firm gas transportation and processing capacity in place to meet planned total Eagle Ford production levels for at least the next two years.

As of June 30, 2012, Rosetta has completed a total of 91 horizontal Eagle Ford wells. About 10 percent of the Company’s identified Eagle Ford inventory is drilled and on production. At the end of the second quarter, 19 drilled wells were awaiting completion and tie-in to facilities, 17 of which were drilled during the second quarter. Also, eight producing wells were temporarily shut-in for offset fracturing activity. Rosetta plans to complete 16 Eagle Ford wells during the third quarter and continue to operate five rigs in the play, including two rigs at Gates Ranch.

May 8, 2012

Production for the quarter averaged an all-time quarterly record of 33.8 thousand barrels of oil equivalent per day (“MBoe/d”), up 31 percent from the same period in 2011 and six percent from the prior quarter. The year-over-year increase was primarily driven by production growth from the Eagle Ford shale, which averaged approximately 30.4 MBoe/d for the first quarter of 2012, up from 14.9 MBoe/d for the same period in 2011. Total liquids production also reached all-time high levels for the period, averaging 17.4 thousand barrels per day (“MBbls/d”) for the quarter.

Production from the Eagle Ford shale grew 11 percent from the fourth quarter of 2011, increasing from 27.4 MBoe/d to 30.4 MBoe/d. The area accounted for 90 percent of Rosetta’s total production for the quarter.

In April 2012, Rosetta began operations from its contracted crude oil gathering, storage, and trucking terminal located in Gardendale, Texas. The long-term agreement provides 25,000 barrels per day (“Bbls/d”) firm oil transportation capacity for Gates Ranch, Briscoe Ranch and Central Dimmit Countyproperties. Additionally, Rosetta has firm gas transportation and processing capacity in place to meet planned total production levels for at least the next two years.

The Company plans to complete 16 Eagle Ford wells during the second quarter and operate five rigs in the play. A new crude oil gathering, storage, and truck loading facility to serve the Karnes Trough area is scheduled to begin operations this summer. At quarter end, Rosetta had 14 drilled wells awaiting completion and tie-in to facilities.

As of March 31, 2012, Rosetta has completed a total of 75 horizontal Eagle Ford wells. Less than 10 percent of its identified Eagle Ford inventory is drilled and on production.

November 7, 2011

Rosetta successfully completed 12 Eagle Ford wells during the quarter ended September 30, 2011. As of September 30, 2011, the Company has completed 52 horizontal wells. During the third quarter, Rosetta operated three to four rigs in the Eagle Ford area. Rosetta is the operator and holds a 100 percent working interest in the following three wells drilled in new areas outside of Gates Ranch:

  • The Briscoe Ranch 1H well is located north of Gates Ranch in a 3,500-acre section of Rosetta’s leasehold in the condensate window in Dimmit County. The well was completed with a 5,500-foot lateral and 15 frac stages and brought on-line on October 26, 2011. The well tested at a gross stabilized rate of 850 Bbl/d of oil, 3.9 MMcf/d of residue gas, 490 Bbl/d of NGLs.
  • The Vivion 1H well is located in central Dimmit County in the oil window on an 8,100-acre tract. The well was completed with a 5,600-foot lateral and 15 frac stages and brought on-line on September 14, 2011. The well tested at a gross stabilized rate of 506 Bbl/d of oil, 436 Mcf/d of residue gas, 102 Bbl/d of NGLs.
  • The Klotzman #1 well is located on 1,900 acres in DeWitt County in the oil window. The well was completed with a 5,100-foot lateral and 15 frac stages and brought on-line on November 1, 2011. The well tested at a gross stabilized rate of 2,450 Bbl/d of oil, 2.0 MMcf/d of residue gas, 250 Bbl/d of NGLs.

Rosetta plans to complete 13 Eagle Ford wells during the fourth quarter and continue to operate four rigs in the area.

As Rosetta moves forward with the delineation, development, and down-spacing of its Eagle Ford leasehold, the total inventory portfolio in the area has grown 45 percent to 2.7 Tcfe compared to year-end 2010. The Company has identified roughly 800 Eagle Ford drilling locations based on well spacing plans between 60 and 80 acres. At a targeted pace of approximately 60 completions per year, Rosetta expects to develop its current Eagle Ford inventory over the next 10 to 15 years.

August 8, 2011

“EAGLE FORD SHALE

Rosetta successfully completed 9 Eagle Ford wells during the quarter ended June 30, 2011. Production from the area grew 45 percent from the first quarter of 2011, increasing from 89 MMcfe/d to 129 MMcfe/d. The Eagle Ford shale contributed 80 percent of Rosetta’s total production for the current quarter.

As of June 30, 2011, the Company has completed 40 horizontal wells. During the second quarter, Rosetta operated two to three rigs in the Eagle Ford area. The Company also initiated two separate infill drilling pilot programs at Gates Ranch to test the feasibility of 50-acre spacing. The first pilot program has been drilled and both pilots are expected to be drilled and completed by the end of the year. Rosetta plans to drill from 25 to 28 Eagle Ford wells during the remainder of the year and currently has three rigs operating in the Eagle Ford shale.”

May 6, 2011

“…Rosetta successfully completed nine Eagle Ford wells during the period ended March 31, 2011. Production from the area grew 31 percent from the fourth quarter of 2010, increasing from 68 MMcfe/d to 89 MMcfe/d. The Eagle Ford play contributed 58 percent of Rosetta’s total production for the quarter.

Overall Eagle Ford well performance continues to surpass expectations. The current Eagle Ford production rate as of May 2, 2011 was 120 MMcfe/d compared to a March 2011 exit rate of 94 MMcfe/d. As a result of increased volumes from Eagle Ford wells, the Company’s total annual production rate and exit rate guidance has been adjusted.

Through March 31, 2011, the Company has completed 31 horizontal wells which represent approximately seven percent of the potential net drilling locations. During the first quarter of 2011, Rosetta operated two rigs in the Eagle Ford area drilling nine horizontal wells. Rosetta plans to drill from 10 to 12 Eagle Ford wells during the second quarter and has recently added a third rig to test new areas in the play.

During the first quarter of 2011, Rosetta’s contracted crude oil gathering, storage, and trucking terminal located in Catarina, Texas began operations….”

Source: rosettaresources.com

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