The Tamar partners - Delek Group Ltd. (TASE: DLEKG), Noble Energy Inc. (NYSE: NBL), and Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) - plan to drill an exploratory well in the Eran license, also known as the Tamar southwest prospect.
According to Netherland Sewell & Associates Ltd. (NSAI), the best estimate for the Eran field is 684 billion cubic feet undiscovered resources of gas, with a 90% chance of success. The field is a fraction of Tamar's 9.9 trillion cubic feet. Well operator Noble Energy advises drilling in the prospect given the probability of success.
Drilling of the well, located 100 kilometers west of Haifa, will begin in a few weeks, after the drilling and production tests at the Aphrodite 2A well in Cypriot waters is completed. The well's budget, without production tests, is $122 million.
In July, Delek and Noble Energy published the resources report by NSAI for the Karish license, located 100 kilometers west of Naharia and north of the Leviathan field. NSAI estimates that Karish has almost the same amount of condensates as Tamar (13 million barrels), even though the Tamar field is five times the size of the Karish field.
NSAI estimates that Leviathan, Tamar, and Karish fields have 60 million barrels of condensate altogether. The licenses previously sold condensate for $100 a barrel (similar to the price of oil), however, the amount of condensate that can be produced at Karish is unknown.
The NSAI resources report states that Karish has a best estimate of 1.3 TCF of gas and a high estimate of 1.8 TCF.
Published by Globes [online], Israel business news - www.globes-online.com - on September 10, 2013
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