Delek Group's (TASE: DLEKG) gas exploration subsidiaries Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) report that the offshore Tanin 1 well, 120 kilometers west of Haifa, has 1.1 trillion cubic feet (TCF) of natural gas: 600 billion cubic feet of proven reserves and 500 billion cubic feet of prospective reserves.
The new estimate is less than the 1.2 TCF prospective reserves previously estimated. Nonetheless, Tanin is still the third largest natural gas discovery after the 17 TCF Leviathan discovery and the 9.7 TCF Tamar discovery.
The discovery is important for the Tanin partners, Delek and Noble Energy Inc. (NYSE: NBL), as it can be linked with the Leviathan discovery, only 20 kilometers away. The companies are considering various alternatives for commercializing the discovery, including exports.
Work on the Tanin well began in August 2011, and has cost $50 million. The companies announced the discovery in February 2011. The well is located in the Alon A license, of which Noble Energy owns 47% and Avner and Delek Drilling own 26.5% each.
Published by Globes [online], Israel business news - www.globes-online.com - on April 8, 2012
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