Noble Energy, Inc. (NYSE: NBL) announced its 2012 capital program and provided guidance for the year. Total capital expenditures are estimated at $3.5 billion for the year. The capital program allocates 51 percent to onshore U.S., seven percent to the deepwater Gulf of Mexico, 22 percent to the Eastern Mediterranean and 14 percent to West Africa. Global exploration and appraisal activity is expected to receive 16 percent of total capital.
Charles D. Davidson, Noble Energy's Chairman and CEO, stated, "Noble Energy is now positioned to accelerate our growth in production and cash flow with contributions from each of our five core areas. We have demonstrated our major project development capabilities by bringing Aseng to production late last year, months ahead of schedule and under budget. Galapagos will follow this year with Tamar and Alen on schedule for first production in 2013. The developments in the Niobrara and Marcellus continue to gain momentum and are expected to deliver consistent growth for many years. Exploration remains a key component of the 2012 program as we plan to test a number of prospects throughout our focus areas. The 2012 program remains consistent with our strategy of delivering value-adding growth through the exploration and development of a diversified portfolio of opportunities."
Within the U.S., the Company expects to invest $1.25 billion in the DJ Basin to expand horizontal Niobrara drilling to include 173 horizontal wells and to maintain an active vertical well program in Wattenberg in 2012. In the Marcellus Shale, $500 million is planned to support the drilling of 99 joint venture wells, targeting 39 operated wells in the liquids-rich area of the play. In the deepwater Gulf of Mexico, the Company expects to spend $250 million where a one-rig program is planned to conduct appraisal drilling at Gunflint and execute a multi-well exploration program.
Noble Energy's core international programs in West Africa and the Eastern Mediterranean represent $500 million and $750 million, respectively. In West Africa, plans are to advance the Alen liquid development project and to continue oil exploration drilling offshore Cameroon. In the Eastern Mediterranean, development activity is focused on the Tamar and Noa natural gas fields, while exploration plans include appraisal work and a deep oil test at Leviathan as well as additional testing of natural gas prospects offshore Israel.
Overall liquid volumes are predicted to represent 46 percent of total volume in 2012, up from 39 percent in 2011. The remaining product split is estimated to be 31 percent domestic natural gas, a slight increase from 2011, and 23 percent international natural gas, a decrease from 32 percent in 2011.
U.S. volumes are anticipated to be up about 22 percent from 2011. The Company's onshore development programs in the central DJ Basin and Marcellus Shale, as well as new field additions in the deepwater Gulf of Mexico are expected to drive this growth.
