The Israeli partners in the Leviathan well report that their US partner, Noble Energy Inc. (NYSE: NBL), informed them yesterday that the Pride North America rig has begun drilling the Leviathan 2 well at the Amit license.
Noble Energy owns 39.66% of Leviathan, Delek Group Ltd. (TASE: DLEKG) units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) each own 22.67% and Ratio Oil Exploration (1992) LP (TASE:RATI.L) owns 15%.
The companies reiterated that drilling of the Leviathan 2 well should take three months. On March 9, they announced that they had approved Leviathan's drilling work plan and budget. The budget for the Leviathan 1 well could reach $190 million, up from the original budget of $150 million, and the estimated budget for the Leviathan 2 well is $70 million.
The companies also announced today that the Petroleum Supervisor at the Ministry of National Infrastructures has extended the Keren/338 license until the end of March 2012. The Petroleum Supervisor stipulated that the companies must carry out the following work plan during the extension period: sign an agreement with a contractor to drill a well by the end of September 2011, and begin drilling according to a revised prospect by the end of March 2012.
Delek Group's share price rose 1.7% in morning trading to NIS 889, Avner's share price rose 1.6% to NIS 2.35, Delek Drilling's share price rose 1% to NIS 12.81, and Ratio's share price rose 1.5% to NIS 0.558.
Published by Globes [online], Israel business news - www.globes-online.com - on March 21, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011