Noble Energy Inc. said Monday that it reached a deal to buy an interest in Falkland Oil and Gas Ltd. license areas that cover about 10 million acres south and east of the Falkland Islands.
Under the terms of the agreement, the Houston-based independent oil and gas company will get a 35 percent interest in most of the area’s northern region. Falkland Oil will continue to operate that area’s licenses until early 2013, when Noble will take over.
Noble also will get a 35 percent interest in most of the acreage’s southern area. Falkland Oil will remain operator of those licenses until no later than early 2014, when Noble will take those over as well, the company said.
Noble will pay some of the costs related to certain wells and make a $25 million cash contribution in January to help cover certain historical costs. The company’s total investment over the next three years is currently expected to total between $180 million and $230 million, Noble said.
Noble said that once completed, the deal will boost its worldwide leasehold by more than 40 percent net.
Noble shares rose 19 cents to $87.89 in morning trading.