Globe Exploration LP (TASE: GLEX.L) will drill an exploratory well at its wholly-owned onshore Ofek license near Moshav Nir Zvi in central Israel. The well will cost $5.1 million.
Drilling the Ofek 2 well is scheduled to begin in 4-8 weeks, after the Ofek 1 well is completed. Drilling is due to take 8-12 weeks, and be finished by the end of the year. The well will go to strata depths of 5,240-5,950 meters.
The best estimate of unrisked prospective resources at the Ofek license is 17.9 billion cubic meters of natural gas with a geological chance of success of 29.4%. The company says that the exploratory well is justified given the current price for natural gas.
The Ofek 2 well is in the same location of the David 1 well, dug in 1993-95, which was halted for technical reasons without examining Permian strata. Turkey's .Güney Yildizi Petrol AS is the drill operator.
Globe Exploration was founded in October 2009, and its controlling shareholders transferred to it the Ofek license, the Bar-Or license in the Western Galilee, and the Yahel license in Haifa Bay. The company raised NIS 47.7 million in its IPO in June 2010.
Globe Exploration's share price fell 5.1% in morning trading to NIS 0.056, giving a market cap of NIS 122 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 20, 2011
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