By OGJ editors
HOUSTON, Dec. 17 -- Noble Energy Inc. and Patina Oil & Gas Corp. have received approval from their directors for Noble to acquire Patina for $3.4 billion, including the assumption of Patina's debt.
Patina produces oil and gas mainly in the Rocky Mountain and Midcontinent areas of the US. Most of Noble Energy's operations are on the Gulf Coast, in the deepwater Gulf of Mexico, and outside the US.
Pending approval by shareholders and regulatory entities, Patina will become the subsidiary of a combined Houston-based company known as Noble Energy, with Patina's Denver offices serving as a branch.
Patina's reserves at the end of 2003 included 36.4 million bbl of oil and 593 bcf of natural gas in Wattenberg field in Colorado, 30.5 million bbl of oil and 278 bcf of gas in the Midcontinent area, 349,000 bbl of oil and 132 bcf of gas in the San Juan basin, and 14.7 million bbl of oil and 21.5 bcf of gas in the central US and other regions.
In 2003, Patina produced an average of 15,720 b/d of oil and 179.6 MMcfd of gas.
The combined company will hold 710 million boe of oil and gas reserves, 55% in the US. Its initial production will be 61,400 b/d of oil and 602 MMcfd of gas.
The acquisition is expected to be completed in March or April.
Charles D. Davidson, president and CEO of Noble Energy, will head the new company as chairman, president, and CEO. Patina Chairman and CEO Tom Edelman will join Noble Energy's board of directors and help in the integration of the companies.