Noble to spend $500M on Marcellus in 2012

Posted February 10, 2012

Pittsburgh Business Times
by Paul j. Gough

Noble Energy, who last year entered into a joint venture with CONSOL Energy Inc. in the Marcellus Shale, said Friday that it will spend $500 million to support those wells in 2012.

The Noble-CONSOL joint venture will include the drilling of 99 wells, including 39 in the liquids-rich region that is getting more money on the market these days than dry gas. The Houston-based oil firm said that it expects volume will be up 22 percent in 2012, thanks in part to the Marcellus Shale.

Noble (NYSE: NBL) also said that it would spend another $328 million as an installation payment as a result of its joint venture with CONSOL in the Marcellus Shale.

CONSOL Energy (NYSE: CNX) and Noble closed in early October on a $3.4 billion joint venture in the Marcellus Shale. The joint venture gives Noble a 50 percent interest in the 628,000 undeveloped acres plus a 50 percent interest in CONSOL's current production.