Modiin Energy LP (TASE:MDIN.L) and Israel Land Development Company Energy Ltd. (TASE: IE), today announced that drilling operator GeoGlobal Resources Inc. (AMEX: GGR) has signed an agreement to hire a drilling platform for the Myra and Sarah offshore leases. The lease will run from December 1, 2011 through April 17, 2012.
Modiin Energy, ILDC Energy, GGR, Israel Petroleum Company Inc. (IPC) and Ofer Investments Ltd, own the Myra and Sarah licenses.
When it arrives, the rig will be the third rig to operate in Israeli waters. Noble Energy Inc. (NYSE: NBL), Delek Group Ltd. (TASE: DLEKG) and their partners have two rigs operating at the Tamar and Leviathan fields.
Sources inform ''Globes'' that a US company is providing the rig for the Myra and Sarah exploratory wells, and that it is not the same company that owns the North America Pride and Sedco Express rigs hired by Noble Energy and Delek.
The sources added that the rig for the Myra and Sarah exploratory wells is designed for deep-water wells and can reach strata beneath the natural gas-bearing strata. This means that if the Myra and Sarah leases owners opt to seek oil they will not have to hire a new rig, as was the case at Leviathan.
In mid-May, the leases partners are due to publish an updated report on the natural gas reserves at Myra and Sarah prepared by an expert international company.
In December 2010, Chapman Petroleum Engineering Ltd., which IPC hired to estimate the gas reserves at two leases, reported 4.77 trillion cubic feet of gas with a 43% of geological chance of success in the Myra and Sarah leases.
Modiin Energy's share price rose 1.9% today to NIS 0.55, giving a market cap of NIS 905 million, but ILDC Energy's share price fell 2.6% to NIS 1.01, giving a market cap of NIS 872 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 27, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011