Could it be that miles below sin city is a vault full of black gold? Noble Energy announced on Thursday that they believe a significant oil resource resides in north eastern Nevada. Noble has acquired 350,000 net acres in the tight oil play at less than $200 per acre. In the investor presentation Noble points out this play was overlooked and under explored by the industry. Noble plans initial production in late 2014, ramping up to grow production to 50,000 bpdoe.
It is refreshing to know that Noble was not out chasing the hottest new play. They were taking their geologic knowledge and applying it to a new play. This demonstrates the entrepreneurial spirit that is embedded in the oil & gas industry, and a reminder for us all that it’s better to lead than to follow, it’s better to be lucky than to good.
Increased exploration from companies like Noble, and consistent improvement in technology, will eventually make America energy independent. Not too mention creating value for shareholders, additional American jobs, and increased taxes paid to the government. I love big oil.