The company will drill a bypass well to reach the oil-bearing strata.
Globe Exploration LP (TASE: GLEX.L) has reported that a mechanical failure in the upper part of the borehole at its Ofek 1 well, near Lod, has blocked the lower part of the borehole, including the target strata. It will therefore not be possible to conduct the Logging While Drilling tests planned for the well. The cause of the failure is not known.
Globe Exploration has decided to drill a bypass well at a depth of 1,400 meters to reach the target strata at a depth of 2,500 meters. The preliminary estimate of the cost of the bypass well is $2.4 billion.
The target strata have an estimated 30 million barrels of oil with a 30% geologic probability of success. The company began drilling the well in October.
Globe Exploration's share price fell 17.6% by early afternoon to NIS 0.042, giving a market cap of NIS 80 million.
Published by Globes [online], Israel business news - www.globes-online.com - on December 1, 2011
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