Noble says “significant” natural gas discovery offshore Cyprus

Noble Energy, Inc. (NYSE: NBL) announced Wednesday a “significant” natural gas discovery of about 7 trillion cubic feet at the Block 12 prospect, offshore Cyprus. The Cyprus A-1 well, nearly 100 nautical miles south east of the island, encountered approximately 310 feet of net natural gas pay in multiple high-quality Miocene sand intervals, the Houston-based company said.
The discovery well was drilled to a depth of 19,225 feet in water depth of about 5,540 feet. Results from drilling, formation logs and initial evaluation work indicate an estimated resource range of 5 to 8 Tcf, with a gross mean of 7 Tcf. The Cyprus Block 12 field covers 40 square miles and will require additional appraisal drilling prior to development, Noble added.
This is far below the government’s initial estimates of “more than 10 Tcf”, but significantly better than Nobles initial appraisal of 3-to-8 Tcf a month ago.
“This is the fifth consecutive natural gas field discovery for Noble Energy and our partners in the greater Levant basin, with total gross mean resources for the five discoveries currently estimated to be over 33 Tcf. This latest discovery in Cyprus further highlights the quality and significance of this world-class basin,” said Charles D. Davidson, Noble Energy’s Chairman and CEO.
“We look forward to working closely with the Government of Cyprus to develop this discovery in a manner that maximizes value for all stakeholders,” Davidson added.
In a televised address to the nation, President Demetris Cristofias describing the discovery as “historic” for the island.
The opposition Democratic Rally also hailed the discovery announcement, saying that it was the result of efforts of all three past and present administrations.
However, party spokesman Haris Georgiades cautioned that a comprehensive national energy policy must be devised and that “the knowledge that energy deposits exist should not replace the path towards a sound fiscal policy and sustainable economic growth.”
“We should not use this discovery for political gain, and must be for the benefit of the next generations and not the next elections,” Georgiades added, as media reports suggest Christofias may seek a second presidential term in February 2013.
Noble Energy operates the well with a 70% working interest. Israel’s Delek Drilling and Avner Oil Exploration will each have 15%, subject to final approval by the Cyprus government. Noble also operates two wells in Israel’s neighbouring Leviathan and Tamar fields, where the biggest discoveries in the eastern Mediterranean have been made.