Noble Energy Production Hit by Colorado Flooding
Houston-based Noble Energy Inc. reported Monday that drilling activities in its DJ Basin operations in northern Colorado have returned to normal levels after flooding last month interrupted Noble’s operations.
Due to the flooding, the company experienced a net production loss on average for this year’s third quarter of approximately 2 thousand barrels of oil equivalent per day. Crude oil, condensate and natural gas liquids comprise 70 percent of that production.
All 10 of the rigs working for Noble are currently operating, Noble said in a statement. Completion activities have been delayed in certain affected locations. However, acceleration of completion activities is underway and will help to eliminate the company’s backlog by the end of first quarter 2014.
Despite these impacts, current production levels are already in excess of pre-flood volumes due to the company’s strong growth in the DJ Basin.
The update on the impact of flooding around the Wattenberg field should ease fears that Noble could have suffered a material impact, according to an Oct. 7 research note from GHS Securities.
“The fact that all the rigs are back up and running, and that production is now above pre-flood levels, indicates to us that Noble came away relatively unscathed.”
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