Noble Energy Inc. (NYSE: NBL) has notified its Israeli partners that it begun the 3D seismic survey of the offshore Ratio Yam, Alon A, and Alon B licenses on September 26. Delek Group Ltd. (TASE: DLEKG) units Delek Drilling LP (TASE: DEDR.L) and Avner Oil and Gas LP (TASE: AVNR.L) each own 26.47% of the Ratio license and 22.67% of the Alon licenses. Ratio Oil Exploration Ltd. (TASE:RATI.L) owns 15% of the Ratio Yam licenses.
The survey, is due to take three months, and will cover a 3,319 square kilometer area of the Amit, Rachel, David, Hannah, and Eran licenses (collectively the Ratio Yam licenses), and adjacent areas in order to provide full technical coverage of the Alon A and Alon B licenses. The survey will be conducted by the seismic ship Vanguard of Norwegian surveying firm Petroleum Geo-Services (OMX: PGS).
The cost of the survey is $21 million, of which Delek Drilling and Avner's share of the survey's cost is $5 million each, and Ratio Oil's share is $2.5 million. The survey will also cover a 770-square kilometer area of Block 12 offshore from Cyprus at a cost of $4.4 million.
The seismic survey will provide leads about the natural gas and oil potential of the geological structures. Leads indicate the presence of oil or natural gas, but do not provide sufficient certainty about the economic feasibility of the potential.
Avner Oil and Delek Drilling's direct parent company, Delek Energy Systems Ltd. (TASE: DEOL) quoted Noble Energy as saying, "The licenses have potential prospects of varying sizes, some of which could be larger than the Tamar field."
Delek Energy and Noble Energy are partners in the Tamar and Dalit natural gas fields offshore from Haifa and Hadera, as well as the in partnership Yam Tethys, which delivers natural gas from fields offshore from Ashkelon.
Delek Group's share rose 0.2% by midday to NIS 639, Delek Energy rose 3.7% to NIS 749.40, Delek Drilling rose 3.5% to NIS 6.97, Avner Oil rose 4.5% to NIS 1.14, and Ratio Oil rose 9.8% to NIS 0.06.
Published by Globes [online], Israel business news - www.globes-online.com - on September 29, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009