Israel's energy market is waiting tensely for the production test results at the Tamar 1 well offshore from Haifa. Tamar prospect's partners are due to announce the test results tomorrow. There were a number of gas blowouts during the tests, generally a clear indication of natural gas reserves at the site.
Energy markets sources predict that the test results will show commercial quantities of natural gas, and are waiting for precise numbers to be announced. Sources believe that the Tamar prospect must have more than 30 billion cubic meters of natural gas reserves to be commercially viable, given the $1.5 billion that will have to be invested to obtain the gas. Tamar's partners have already invested $140 million in the prospect.
Industry sources believe that the amount of gas reserves could be much higher, and 50-60 billion cubic meters would also be considered reasonable by Tamar's partners.
Two weeks ago, Houston-based Noble Energy, which is operating the well, reported a commercial gas discovery of 88 billion cubic meters at the site, and estimated that the total reserves could be even greater.
In a rare public statement last Wednesday at the Credit Suisse Energy Summit in Vail, Colorado, Noble Energy chairman, president and CEO Charles Davidson said, "The results appear much better than the preliminary estimates. We're talking about the largest project in the company's history, with huge importance for our local partners and Israel as a consumer."
Davidson added that the gas discovery at the Tamar well suggested that the entire region could have huge potential for the company for future exploration.
Noble Energy Inc. (NYSE: NBL) owns 36% of the Tamar prospect, Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) owns (28.75%), Delek Group Ltd. (TASE: DLEKG) subsidiaries Delek Drilling LP (TASE: DEDR.L) and Avner Oil and Gas LP (TASE: AVNR.L) each own 15.625%, and Alon Israel Oil Company Ltd. subsidiary Dor Gas Exploration Ltd. owns 4%.
Published by Globes [online], Israel business news - www.globes-online.com - on February 10, 2009
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