Noble Energy Sees Higher End Of Its Exploration Costs

Noble Energy, Inc. NBL said it now expects its total exploration expense to be at the higher end of its previous guidance range of $130-$170 million in the first quarter. The company disclosed its drilling operation at the Silvergate exploration well was completed.

Noble Energy said it didn't face any commercial hydrocarbons and was being plugged before abandoning it. The company indicated it operated the well with a working interest of 50 percent.

The drilling firm indicated its rig would now be shifted to Green Canyon Block 39 and start drilling an appraisal well at the Katmai oil discovery. According to the firm, the appraisal well was meant to test additional gross resource potential of more than 40–60 barrels of oil equivalent that were already discovered.

Noble Energy said results from the appraisal well could be expected towards the fourth quarter of the current year. The company has 38 percent working interest in it.

Shares of the company closed in the red with a 0.8 percent loss.