Citigroup Maintains Buy, $110 PT on Noble Energy

Citigroup reiterates its Buy rating and $110 price target on Noble Energy NBL as Cyprus yields significant natural gas discovery. Citigroup says, "Noble Energy this morning announced a significant natural gas discovery on Block 12 offshore Cyprus (NBL 70% WI). The company estimates the gross resource potential at 5-8 Tcf (7 Tcf gross mean, which net equates to ~75% of its total year-end 2010 proven reserve base). Cypress appears to be “dry” gas with similar reservoir and geological characteristics to the Leviathan discovery offshore Israel. The gross mean reserve potential from NBL's five most recent discoveries in the Mediterranean is now estimated at 33 Tcf." NBL closed at $95.64 per share on Tuesday.