The partners in the Leviathan structure today announced signs of natural gas at a depth of 5,100 meters, nearly two years after natural gas was found at the Tamar license. The notice to the Tel Aviv Stock Exchange (TASE) was made after the Leviathan 1 exploratory well penetrated the first target strata before dawn today. 16 trillion cubic feet of natural gas are trapped in the strata, almost double the quantity of gas at Tamar.
The Israeli partners in Leviathan - Delek Group Ltd. (TASE: DLEKG) subsidiaries Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) (22.67% each), and Ratio Oil Exploration (1992) LP (TASE:RATI.L) (15%) - notified the TASE that their US partner, well operator Noble Energy Inc. (NYSE: NBL) unit Noble Energy Mediterranean, which owns 39.66% of Leviathan, informed them that the well had reached the main target, the NG-10 natural gas prospect at Leviathan.
"Preliminary analysis of the information obtained from the well indicates that the main target includes sands that contain natural gas," the announcement says. The companies added, "This is only a preliminary indication, and it is not yet possible to determine the quantity, quality, or economic viability of the gas field. In other words, the existence of a gas field is not in question. In the coming days, we will continue the drilling into the main target, while performing various tests at the well, including electrical tests (logs). When the logs are completed, which should take about two weeks, an updated announcement will be made."
Drilling of the Leviathan exploratory well began on October 18, on the basis of the 3D survey of the structure, which indicated the presence of 453 billion cubic meters of natural gas with a geologic chance of success of 50%.
Noble Energy and Delek are also partners in Tamar, along with Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) and Dor Alon Energy in Israel (1988) Ltd. (TASE:DRAL) unit Dor Alon Energy Exploration Ltd.
Trading in the Leviathan partners' share has not yet resumed.
Published by Globes [online], Israel business news - www.globes-online.com - on November 29, 2010
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