US company Noble Energy Inc. (NYSE: NBL) has started drilling in Cyprus's Block 12 license. At the start of the month, the Turkish government threatened to send the Turkish navy to Cyprus if the latter continued with its plan to drill at the location. However, Noble Energy, a partner of Israeli company Delek Group Ltd. (TASE: DLEKG), began drilling today, ten days before the end of the period stipulated in the agreement between it and the Cypriot authorities.
The Block 12 license is located north of the Israeli licenses owned by Noble Energy, Delek, and Ratio Oil Exploration (1992) LP (TASE:RATI.L) where the Leviathan oil field is located. Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) each hold an option on 15% of the rights in Block 12. The exercise of the agreement is still subject to receiving final permission from the Israel Securities Authority, as well as from Cypriot authorities.
The drilling in Block 12 is an exploratory drilling to verify the findings of teh three-dimensional survey that Noble Energy conducted last year. Cypriot Energy Service director Solon Kassinis told "Globes" last week that he believes that they will discover a gas field at least the size of the Tamar field at this location. In an interview with "Globes", Kassinis spoke about the possibility that the Israeli Navy could protect Block 12, which he says is only 33 km from the Leviathan oil field.
According to Noble Energy, if gas is in fact discovered at this location, it will be possible to complete its development by 2014, only one year after Tamar is expected to begin operating. Drilling in Block 12 is being carried out by the Homer Ferrington rig. Upon its completion, the rig is due to complete finish the development of Yam Tethys's Noa reservoir. At the beginning of 2012, the Homer Ferrington is due to engage in exploratory drilling in the Sarah and Myra wells owned by Hachshara Energy and Modiin Energy LP (TASE:MDIN.L) among others.
Published by Globes [online], Israel business news - www.globes-online.com - on September 19, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011