With the merger of Patina Oil & Gas Corp. now complete, Noble Energy Inc. CEO Chuck Davidson said Thursday that the company’s North American acquisitions and development will be focused on “tactical portfolio additions.”

Speaking at the company’s annual analyst meeting, Davidson said that with the Patina acquisition, Noble’s exploration is now focused on delivering “more significant resources,” and said its increased oil and gas volumes — and high commodity prices — will enable the company’s international business to add new ventures and opportunities. “It allows a lengthened planning horizon as near term becomes more certain.” Noble announced its $3.4 billion acquisition of Patina late last year (see Daily GPI, Dec. 17, 2004).

Davidson said that the producer’s strategy now is to focus on returns and international expansion as its U.S. basins mature. “The basic strategy elements remain,” he told analysts. “We will aggressively drive organic growth programs and leverage our unique expertise both in North America and internationally.” He also said that Noble would be “vigilant” in reducing costs, and would maintain its financial strength so that “we can weather the cycles.”

Now that Patina is part of Noble, Davidson said, “there is even greater confidence in both production growth and relative cost improvement,” adding that Noble’s “delivery of strategic objectives has been significantly accelerated.”

Lehman Brothers analyst Thomas Driscoll said following the meeting that Noble’s 2005 production guidance of 150,000 boe/d “is in line with our estimate of 152,800 boe/d, but 2006 guidance of 200,000-210,000 boe/d is 5-10% above our estimate.” He attributed the “upside surprise” to Noble’s higher volumes from additional sales contracts overseas in Israel.

“Although it is too early for the company to give specific guidance for 2007 volumes, they noted that large portions of the portfolio are experiencing no production decline…and that projects in the deepwater Gulf of Mexico (GOM), the UK and Israel should make important contributions to growth in 2007,” said Driscoll. “We believe the merger with Patina gives Noble a far more balanced portfolio in terms of geography (onshore versus offshore and domestic versus international) and provides it with a stable production base. On a proforma basis, Noble’s production is 49% onshore, 32% international and 19% GOM.”

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