Delek Group Ltd. (TASE: DLEKG) and Noble Energy Inc. (NYSE: NBL) today reported a substantial natural gas discovery at a depth of 5,500 meters (including water) in the offshore Tanin 1 (Crocodile) well, 120 kilometers northwest of Haifa.
The Tanin discovery reportedly amounts to 1.2-1.3 trillion cubic feet, making it slightly larger than the two company's Yam Tethys reservoir, which is rapidly depleting. Delek Group owns its share of the Tanin license through Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L).
The well discovered net gas-bearing strata 40 meters thick, on the basis of logging while drilling tests. Noble Energy is now stabilizing the borehole in order to conduct wireline, electrical, seismic, and magnetic tests, as well as logging tests of the composition of the natural gas, rocks, and liquids at the well.
The target strata, part of the Tamar sands structure, are divided into two prospects - Sand A and Sand B.
The Tanin well was drilled by the Ensco 5006 rig (formerly North America Pride rig), after it drilled the Dolphin 1 well for Noble Energy and Delek.
In a separate development, Delek, Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) and Ratio Oil Exploration (1992) LP (TASE:RATI.L) decided not to develop the Or natural gas prospect, located in the Med Yavne offshore license.
Delek Group's share price rose 1.6% in morning trading to NIS 792.80, giving a market cap of NIS 8.9 billion, Avner's share price rose 2.7% to NIS 2.66, giving a market cap of NIS 8.7 billion, and Delek Drillin's share price rose 2.9% to NIS 15.35, giving a market cap of NIS 8.2 billion. Isramco's share price rose 1.3% to NIS 0.536, giving a market cap of NIS 6.4 billion, and Ratio's share price rose 1.4% to NIS 0.37, giving a market cap of NIS 2.7 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on February 5, 2012
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