Noble Energy to divest oil and gas properties in US for $505m

Noble Energy has signed an agreement to sell oil and natural gas properties in the Greeley Crescent area of Weld County, Colorado, US, to Synergy Resources for $505m.

Under the agreement, Noble will sell around 33,100 primarily undeveloped net acres within the DJ Basin.

Noble Energy chairman, president and CEO David Stover said: "The Greeley Crescent sale signifies Noble Energy’s continued portfolio management efforts and accelerates the value of these assets to the company.

"Our DJ Basin development activities are currently focused on Wells Ranch and East Pony, where we have a deep inventory of long lateral drilling opportunities in an oily part of the basin.

"Combined with other asset sales, we have now announced transactions totalling more than $775m in proceeds this year, which further enhances our flexibility to strengthen our investment-grade balance sheet and accelerate activity levels once justified by higher commodity prices."

The average daily production on the divested assets is about 2,400 barrels of oil equivalent per day.

The acreage, as well as production sold by Noble, represents about 8% and 2%, respectively of the company’s totals in the DJ Basin.

Upon closing of the transaction, Noble’s DJ Basin position will total 363,100 net acres, including 111,600 combined acres in Wells Ranch / East Pony and 31,800 acres in the Greeley Crescent area.

The transaction is subject to customary terms and conditions and is expected to close in June 2016.

In the first quarter of 2016, sales volumes of DJ Basin averaged 118 MBoe/d, representing a 2% rise from the first quarter of 2015.

During the quarter, the combined volumes of Wells Ranch and East Pony averaged nearly 65 MBoe/d, a 34% increase compared to the first quarter of 2015.