Myra and Sarah leaseholder Israel Land Development Company Energy Ltd. (TASE: IE) today notified the TASE that it is in talks with Israel Corporation (TASE: ILCO) and other companies about an investment in the company. Talks are also underway with Israel Corp to buy natural gas, assuming that gas is found in the offshore leases. ILDC Energy owns half of the two leases through Emanuelle Energy Ltd..
Drilling an exploratory well at Myra and Sarah is scheduled to begin in January 2012 and continue through mid-February by the Noble Homer Ferrington rig owned by Noble Corporation (NYSE: NE). The rig is currently drilling an exploratory well at Cyprus's Block 12 concession, owned by Noble Energy Inc. (NYSE: NBL), after which it is scheduled to continue drilling the Leviathan 1 well, owned by Noble Energy, Delek Group Ltd. (TASE: DLEKG), and Ratio Oil Exploration (1992) LP (TASE:RATI.L).
In June, the Myra and Sarah leaseholders reported that the 3D seismic study found 1.4 trillion cubic feet of gas (best estimate), with a 58% geological chance of success. The low end to the high end estimates are unusually wide however, ranging from 170 billion cubic feet to 12.1 trillion cubic feet. The cost of the exploratory well is $150 million, but could rise to $250 million, depending if findings suggest that production tests should be carried out.
ILDC Energy's partners in the two licenses, include Modiin Energy LP (TASE:MDIN.L), Israel Petroleum Company Inc. (IPC), and Canada's GeoGlobal Resources Inc. (AMEX: GGR).
ILD Energy's share price rose 2.5% today to NIS 0.97, giving a market cap of NIS 800 million.
Published by Globes [online], Israel business news - www.globes-online.com - on October 4, 2011
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