Noble Energy Sells Stakes

It sells stakes in two fields to a Helix Energy unit.
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Noble Energy

(NBL) - Get Report

sold stakes in two oil fields to Helix Energy.

Noble said it would sell its 25% stake in Boris oil-field and 40% stake in Little Burn oil-field to the Energy Resource unit of Helix for an undisclosed sum.

On the whole, Helix acquired a 100% working interest in three Gulf of Mexico oil-fields including Typhoon (Green Canyon Blocks 236/237), Boris (Green Canyon Block 282) and Little Burn (Green Canyon Block 238), from

Chevron

(CVX) - Get Report

,

BHP Billiton

(BHP) - Get Report

and Noble Energy.

Before the acquisition, Typhoon was owned by Chevron (50%) and BHP Billiton (50%), while Boris was owned by BHP Billiton (50%), Chevron (25%) and Noble Energy (25%). Little Burn was owned by BHP (60%) and Noble Energy (40%). The agreement is subject to MMS approval of a new development plan, which is expected in the next 60 days.

Prior to the September 2005 damage by Hurricane Rita, which led to the shutdown of production at Typhoon and Boris, the combined flow rate from the two wells averaged about 13,000 barrels of oil per day and 21 million cubic feet gas per day in the last month of production.

ERT plans to complete the Little Burn development well, drilled by BHP Billiton, and tie back both Little Burn and the new Typhoon No. 4 well, to its production facility, once it is in place. Typhoon No. 4 was flow tested at a rate of 7,700 barrels of oil per day, as is expected of Little Burn development well. ERT will also have farm-in rights on five near-by blocks where three, moderate to low risk prospects have been identified in the Typhoon mini basin. Following the acquisition of the Typhoon field and MMS approval, the company will rename the field Phoenix.

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