Drilling problems have emerged in the Block 12 concession in Cypriot waters: pockets of water and signs of gas seepage are hampering the first stage of exploratory drilling there. "Globes" has been informed that the completion of drilling will be delayed a month, which will delay the rig's upcoming projects as well: completion of the Noa gas field and drilling the exploratory wells at Myra and Sarah.
A problem that is well-known in Israel has arisen: pockets of water that are liable to cause water to penetrate the shaft thereby jeopardizing the continuation of the drilling, have been sighted. Drilling in the Leviathan 2 well was brought to a halt last May by water seepage into the drilling shaft due to faulty walling of the shaft. The Homer Ferrington rig, owned by Noble Corporation (NYSE: NE), which is currently drilling at Block 12, is taking care that sides of the shaft are reinforced in a professional manner. As a result, the completion of drilling has been delayed to the end of November 2011. According to preliminary reports by Noble Energy Inc. (NYSE: NBL), Block 12 holds about 10 TCF, slightly more than the Tamar discovery (9.25 TCF) and smaller than the Leviathan discovery (16 TCF).
Block 12 is located north of the Leviathan discovery, very near the border between the exclusive economic zones of Israel and Cyprus .
The Cypriot media excitedly reported last week that initial signs of gas were discovered at a depth of 2,200 meters under the sea floor, 1,800 meters above the target level that was expected to contain natural gas. Cypriot newspapers rushed to interpret these signs as proof that the roof of the gas reserve is higher than expected, and they even quoted estimates that the reserve contains 40% more gas than Noble Energy expected. Professionals involved in the project, however, say that this is a bad sign. They say that gas at this level could have been caused by gas seepage from the structure, which would raise the probability that the drilling will be a failure.
Published by Globes [online], Israel business news - www.globes-online.com - on October 17, 2011
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