Offshore Staff
(US, GoM) - Noble Energy, Inc. has entered into a purchase and sale agreement to sell its Gulf of Mexico shelf assets to Coldren Resources LP for $625 million. The sale is expected to close by June 30, 2006 with an effective date of March 1, 2006.
The purchase and sale agreement is subject to customary conditions, including expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and closing adjustments.
The sale will include essentially all of the company's assets on the GoM shelf. Although, Noble Energy will retain its interest in the Main Pass area, which is currently undergoing repair work after suffering significant hurricane damage in 2004 and 2005.
The company plans to continue active exploration and production activities in the deepwater GoM and onshore Gulf Coast areas.
Production from the assets to be sold currently totals approximately 5,000 b/d of oil and 90 MMcf/d of natural gas, net to Noble Energy, for a combined total of approximately 20,000 boe/d.
As of March 1, 2006, Noble Energy's proved reserves for the assets being sold totaled 7 MMbbl of oil and 120 bcf of natural gas, or a combined total of 27 MMboe.
Charles Davidson, Noble Energy's chairman, president and CEO, said, "The sale of our GoM shelf assets is another significant step in focusing Noble Energy's future investments and growth in the most prospective areas worldwide.
After-tax cash proceeds from the sale are expected to be approximately $525 million. The company expects to record a pretax gain from the sale of approximately $270 million.
05/16/06
