Noble earnings to take hit after Deep Blue appraisal halt

By Anthony Guegel

 12 July 2012 22:59 GMT

US independent Noble Energy has halted appraisal work at the Deep Blue exploration prospect in the deep-water Gulf of Mexico and expects to take a $118 million hit to earnings for exploration expense in the second quarter, writes Noah Brenner.

Although hydrocarbons were found in both the initial explor­ation well and subsequent sidetrack, Noble said the company and its partners “have decided not to proceed with additional appraisal activities at this time”.

The move also appears to shelve for now any plans for development at Deep Blue in Green Canyon Block 723 and adjacent blocks.

Noble had previously said it found 32 feet of net pay at Deep Blue and “multiple high-quality reservoirs” with “excellent hydrocarbon fluid properties”.

The company had said the subsalt Miocene prospect had potential reserves of between 90 million and…

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