Second Leviathan drilling rig arrives

The Pride North America rig has arrived in Israeli waters and will begin drilling the Leviathan 2 well within a day or two. Drilling at the Leviathan 1 exploratory well by the Sedco Express rig will continue in parallel to the production tests by the Leviathan 2 well.

Noble Energy Inc. (NYSE: NBL) owns 39.66% of Leviathan, Delek Group Ltd. (TASE: DLEKG) units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) each own 22.67%, and Ratio Oil Exploration (1992) LP (TASE:RATI.L) owns 15%.

The market is waiting for the results from the exploratory well at Leviathan. The partners reported, on the basis of the 3D seismic survey of the structure, that the second target strata (the first strata that main contain oil), at a depth of 5,800 meters may have three billion barrels of oil with a 17% chance of geological success. The third target strata, at a depth of 7,200 meters may have 1.2 billion barrels of oil with an 8% chance of geological success.

Published by Globes [online], Israel business news - www.globes-online.com - on March 14, 2011