General

Noble Energy, Inc. is one of the nation’s leading independent energy companies engaged in the exploration, development, production, and marketing of crude oil and natural gas. Our goal is to deliver superior returns to our stakeholders relative to our peers. We believe that by having a balanced and diversified portfolio of domestic and international exploration and development projects and managing our costs, we enhance the probability of achieving our goals.

Strategy

Our strategy is to:

Aggressively drive organic growth;
Leverage our unique international expertise in monetizing resources; Selectively pursue acquisitions in focus areas; and
Remain vigilant in managing costs.

Proved Reserves

As of December 31, 2006, we had estimated proved reserves of 3.2 Tcf of natural gas and 296 MMBbls of crude oil. On a combined basis, these proved reserves were equivalent to 835 MMBoe, of which 55 percent were located in the U.S. and 45 percent were located internationally. Our proved reserves have increased 59 percent over the past three years. At December 31, 2006, 71 percent of our reserves were proved developed.

North America Operations

Noble Energy’s North America operations are divided into a Northern and Southern Region. The Northern region includes our operations in the Rocky Mountain area as well as activities in the western Mid-continent. The Rocky Mountain area includes the DJ (Wattenberg field), San Juan, Wind River, and Piceance basins, as well as the Niobrara, Bowdoin, and Siberia Ridge fields. The acquisitions of Patina and U.S. Exploration, particularly in the Wattenberg field, combined with our legacy operations have made the Rocky Mountains one of our core operating areas. The Western Mid-continent area is composed of the Texas Panhandle and parts of Oklahoma, Kansas, Arkansas, and Alabama.

The Southern region includes the Gulf Coast onshore, West and East Texas, Louisiana, and the deepwater Gulf of Mexico, as well as the Eastern Mid-continent area ( Oklahoma, Kansas, Illinois and Indiana). Three of Noble Energy’s deepwater Gulf of Mexico developments, Swordfish, Ticonderoga, and Lorien were all contributing production by April 2006, providing significant production and cash flow. A new area of focus for the company is the emerging New Albany Shale play, where the company holds a significant acreage position in southwest Indiana.

International Operations

Our most significant international area of operations is in West Africa ( Equatorial Guinea and Cameroon). We began operations in Equatorial Guinea in the early 1990’s and more recently expanded into Cameroon. Other areas include the Mediterranean Sea ( Israel), Ecuador, the North Sea ( UK, the Netherlands and Norway), China, Argentina, and Suriname, and we are actively pursuing new opportunities in other parts of the world.

Significant projects in Equatorial Guinea, Israel, Ecuador, and the North Sea provide the foundation for continued production growth. High-impact exploration in West Africa ( Equatorial Guinea and Cameroon), Israel, Suriname, and Norway, as well as continued development in Equatorial Guinea (gas sales to LNG), Israel (market expansion), China, and the UK portion of the North Sea create additional potential for growth.