Anyone get a weird feeling about BP going to the DJ? Any suspicion that they would buy Noble's DJ asset?
5 replies (most recent on top)
It make no sense. BP does not want Noble's crappy leasehold in the DJ Basin. It's a marginal Basin that will leftovers for small to medium operators. Noble makes no money in the DJ. Noble may divest in the DJ but it won't be to BP. It will be piecemeal sales to small operators.
Makes perfect sense. BP knows that basin inside out because of the Union Pacific Railroad deal they cut back in the early 1970s. 3/4 of every other Section in every township where the railroad owned property was leased to BP(Amoco/Standard Oil back then). BP reaped huge wins from fields like Peoria, Wattenberg, etc. I bet it's going for dirt cheap from Noble.
Ever notice how Noble suddenly develops interest in the basin du jour? It should be clear then that they will sell the asset when the stock analysts are no longer interested in It. Has that time arrived? We shall see. One thing you can be sure of though, they're going to keep selling assets to prop up the balance sheet. The DJ will be sold in a heartbeat if that's what it takes to keep the company afloat for another quarter.
http://www.rigzone.com/news/oil_gas/a/148293/BP_Plays_Long_Game_with_Rockies_Assets
Noble has proven to have a short attention span and have been in the DJ for awhile. Seems reasonable to sell and move on to the next s-xy basin. More Permian?