Noble Energy Inc. (NBL) said it has temporarily stopped drilling at its Leviathan #1 location, offshore Israel, due to a wear on the wellbore casing. Noble said the oil drilling at the well will be suspended until it secures the required material and equipment to complete the work. The company was performing tests for the deeper potential in the well.
In the meantime, Noble Energy plans to move the Sedco Express rig to work upon the development drilling at the Tamar field. Drilling at the field is expected to begin in about a week’s time. The company expects to start commissioning the Tamar field in late 2012.
Noble Energy is the operator and owns about 39.66% interest in the Leviathan prospect, offshore Israel, in the Rachel license. Derek Drilling and Aver Oil Exploration are among other interest owners with 22.67% each and Ratio Oil Exploration with the remaining 15% interest.
Noble is also the operator of Tamar, also offshore Israel, in the Matan license. The company owns about a 36% working interest in the field. Co-owners in the field include Isramco Negev 2 (28.75% interest), Delek Drilling (15.625%), Avner Oil Exploration (15.625%) and Dor Gas Exploration (4%).
Noble Energy is a leading independent energy company engaged in worldwide oil and gas exploration and production. The company has core operations onshore in the U.S., primarily in the DJ Basin, in the deepwater Gulf of Mexico, offshore Eastern Mediterranean and offshore West Africa.
The prospects of Houston, Texas-based Noble Energy look good, mainly due to its well-balanced high-grade hydrocarbon portfolio, brilliant execution capability and competitive cost structure. Moreover, its disciplined investment approach, strong balance sheet and low debt-to-capital ratio gives it excellent financial flexibility to fund development projects.
Looking ahead, we see the stock performing in line with the broader market and rate it as Neutral. Noble Energy currently retains a Zacks #3 Rank (short-term Hold). The company is rated at par with its closest peers Anadarko Petroleum Corporation (APC) and Chevron Corporation (CVX), based on the short term Zacks Rank.
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