Commercial quantities of natural gas have been found at the Tamar-1 well, 90 kilometers offshore from Haifa. The discovery amounts to the largest reserves found to date in Israel.
The Tamar prospect in the Matan license is owned by Delek Group Ltd. (TASE: DLEKG) units Delek Drilling Limited Partnership (TASE: DEDR.L) and Avner Oil and Gas LP (TASE: AVNR.L) with a 15.625% stake each, along with Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) (28.85%), and Noble Energy Inc. (NYSE: NBL) (36%), and Alon Israel Oil Company Ltd. subsidiary Dor Gas Exploration Ltd. (4%)
The Tamar 1 well, located in 5,500 feet of water, was drilled to a total depth of 16,076 (4,900 meters) feet to test a subsalt, lower-Miocene structure in the Levantine basin. The thickness and quality of the reservoirs encountered were greater than anticipated at the well location.
Preliminary indications show 88 billion cubic meters of natural gas at the Tamar prospect. Production testing at Tamar will be performed after the well is completed. The companies may keep the rig to drill up to two additional wells in the basin. Pending positive test results, one well could be an appraisal at Tamar.
Noble Energy chairman, president and CEO Charles D. Davidson said, "Tamar represents our first exploratory well offshore Israel in more than five years, and we are extremely excited by the results. This is one of the most significant prospects that we have ever tested and appears to be the largest discovery in the company's history. Early indications are that the resources identified are very substantial, at least equal to our pre-drill estimated gross mean resources of over three trillion cubic feet. Subject to the collection of additional data, the resource estimate for Tamar could further increase."
Israeli energy market sources believe that the Tamar gas discovery increases the likelihood of more discoveries at other offshore concessions in the region. Delek Drilling and Avner have a concession to drill in Cypriot concessions adjacent to the Israeli concessions, and they are in talks with PetroMed Corporation (XETRA: N1Z) to create a partnership for a concession offshore from Hadera, south of Tamar.
The Tamar discovery will likely significantly reduce Israel's dependence on natural gas deliveries from East Mediterranean Gas Company's reserves in Egypt and BG Group plc's (NYSE: BRG; LSE: BG) offshore from Gaza. The discovery will also ease the pressure on the Israeli government to organize the construction of a liquid natural gas terminal, which is now due to open in 2014-15.
Delek Group's share shot up 35% to NIS 243 at the opening today. Delek Drilling's share rose 12.5% to NIS 2.50, and Avner's share rose 33% to NIS 0.47. Isramco's share rose 34% to NIS 0.18.
Published by Globes [online], Israel business news - www.globes-online.com - on January 18, 2009
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