Noble Energy Makes Oil Discovery on block i offshore equatorial guinea

Noble Energy Makes Oil Discovery On Block I Offshore Equatorial Guinea

10-05-2007

Noble Energy, Inc. announces results on its Benita appraisal well on Block "I" offshore Equatorial Guinea. The "I-2" appraisal well encountered approximately 148 feet (45 meters) of net pay of which there is an estimated 33 feet (10 meters) of net gas pay underlain by 115 feet (35 meters) of net oil pay. Preliminary PVT analysis indicates a crude oil gravity of 32 degrees. The "I-2" well, located in 3,120 feet (951 meters) of water and approximately 26 miles (42 kilometers) east of Bioko Island, was drilled to a total depth of 10,580 feet (3,225 meters). It is approximately 1.9 miles (3.1 kilometers) southwest of the "I-1" well, the original discovery in the Benita prospect.

Reservoir quality at the "I-2" location appears similar to that which was encountered at the "I-1" location. Well "I-1" encountered an extremely high quality Miocene reservoir containing 135 feet (41.5 meters) of net hydrocarbon pay. Production tests from the well yielded flow rates of 1,038 barrels per day of condensate and 34.3 million cubic feet per day of natural gas, or approximately 6,755 barrels of oil equivalent (based upon a natural gas to crude oil conversion ratio of 6 to 1) per day, with production rates limited by test facilities.

Noble Energy and its partners have decided to defer testing of the "I-2" well and instead plan to secure an additional drilling rig that will be capable of further appraisal drilling downdip in the Benita oil column, which is in deeper water. It is expected that a rig will be available for drilling the additional Benita appraisal well either late in the 4th quarter of 2007 or in the 1st quarter of 2008. The Songa Saturn which drilled the "I-2" will next move to another prospect location on Block "I".

Charles D. Davidson, Noble Energy's Chairman, President and CEO, said, "Results from the Benita appraisal well have clearly highlighted the upside exploration potential of the Douala Basin in Equatorial Guinea. We have now confirmed with this latest well the presence of significant oil resources in addition to the previously discovered gas and condensate resources in this basin. We plan to proceed with an aggressive program to further define the resources in this area such that an optimal development program may be designed."

The Ministry of Mines, Industry and Energy (MMIE) of the Republic of Equatorial Guinea, indicated, "With this discovery, the MMIE demonstrates the results of an aggressive exploration campaign which makes Equatorial Guinea one of the "Hotspots" of the Gulf of Guinea."

Noble Energy is the Technical Operator of Block "I" with a 40 percent participating interest. Its partners on the block include Atlas Petroleum International Limited (29 percent participating interest), who is the Administrative Operator, Glencore Exploration Ltd. (25 percent participating interest) and Osborne Resources Limited, a company within the PA Resources Group (six percent participating interest). GEPetrol (the national oil company of the Republic of Equatorial Guinea) has a five percent carried interest once commerciality has been determined.