Noble Energy to buy Colorado assets from Suncor

Noble Energy Inc. agreed to pay $494 million to Suncor Energy Inc. for oil and gas properties in Colorado.

By OGJ editors
HOUSTON, Jan. 5
-- Noble Energy Inc. agreed to pay $494 million to Suncor Energy Inc. for oil and gas properties in Colorado.

The acquisition will add 10,000 boe/d, or 46 MMcfd of natural gas and 2,500 b/d of liquids to Noble Energy's production.

The transaction involves 340,000 total net acres of which nearly 200,000 acres are in the Denver-Julesburg, or DJ, basin.

The DJ basin contains Wattenberg field, which is Noble Energy’s largest onshore US asset. The transaction includes 53 million bbl of proved reserves, of which 80% are in Wattenberg field.

Noble Energy has identified several thousand projects associated with the acquisition, including more than 2,000 drilling sites in Wattenberg.

The acquisition, subject to regulatory approvals, is expected to close late in the first quarter.

Noble Energy plans to add two rigs to its Wattenberg program this year as a result of the transaction, increasing its operated drilling activity in the field to eight rigs.

Suncor of Calgary is selling the properties, some of which it acquired through its acquisition of Petro-Canada. Suncor is divesting certain assets so it can focus on oil sands development in Western Canada.

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