Noble Energy Inc. (NYSE: NBL) has reported interim results of the drilling of the Leviathan deep well to a depth of 21,400 feet (6,522 meters). The energy exploration company said that high well pressure and the mechanical limits of the wellbore design resulted in the suspension of drilling operations before the primary objective was reached.
Noble added that, "Over the course of deepening the Leviathan 1 well, the company and its partners have obtained valuable geologic and engineering data about the basin. At approximately 21,000 feet, the well encountered a zone where natural gas was detected. The composition of the natural gas was heavier than discovered in the shallower intervals and suggests a thermogenic source. Additionally, at total depth of 21,400 feet, higher pressure was encountered indicating the possibility of an overlying seal."
Sources close to the drilling told "Globes" that in light of the data uncovered during the drilling, the new resources report that is expected to be published, "see the likelihood of finding oil as higher." The belief in the sector is that it will not be possible to renew drilling this year.
The planned final depth of the drilling is 7,400 meters.
Noble Energy SVP exploration and business development Susan M. Cunningham said, "Although the well did not reach the planned objective, we are encouraged by the possibility of an active thermogenic petroleum system at greater depths within this basin. We will integrate the data from the Leviathan deep well into our model to update our analysis and design a drilling plan specifically to test the deep oil concept. Part of the plan will be to secure a rig with the capabilities necessary to reach the target objective."
She added, "Based on the information received to date, we continue to believe there is potential for significant oil resources in this prospect and the basin."
Noble said that he Homer Ferrington rig is scheduled to remain on location at the well to conduct a production flow test of the previously discovered natural gas sands at Leviathan.
The Leviathan partners also said last night that the budget for drilling Leviathan has risen from $220 million to $270 million. Estimates so far are that the Leviathan field contains 17 trillion cubic feet of natural gas.
The Leviathan partners are Noble Energy (39.66%), Delek Group Ltd. (TASE: DLEKG) units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) 22.67% each, and Ratio Oil Exploration (1992) LP (TASE:RATI.L) (15%).
Published by Globes, Israel business news - www.globes-online.com - on May 3, 2012
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