Myra and Sarah licensees Israel Land Development Company Energy Ltd. (TASE: IE), Modiin Energy LP (TASE:MDIN.L), and IPC Oil and Gas Holdings Ltd. (IPC) (TASE: IPC) today announced that well operator GeoGlobal Resources Inc. (AMEX: GGR) had notified them about difficulties with the Myra 1 well.
The drilling pipe in the borehole is stuck, preventing further drilling according to the original plan. After a meeting with the license partners, GGR will carry out sidetrack drilling to reach the target strata. The partners also agreed to GGR's request to increase the drilling budget by $4 million and extend the drilling by seven days.
GGR notified Modiin Energy, ILDC Energy, and IPC that it was examining the effect of the breakdown on the drilling to the target strata, including ways to reach the strata.
Drilling of the Myra 1 well began in late June, and was scheduled to take 70 days, and will be followed by the drilling of the Sarah 1 well. The Myra 1 well is located in 1,500-meter water and is targeting strata at a depth 5,200 meters (including water). The Sarah 1 well is located in 1,300-meter water and is targeting strata at a depth 4,300 meters (including water). The two licenses each cover 400 square kilometers 80 kilometers west of Hadera, south the Tamar and Dalit discoveries.
Netherland Sewell & Associates' (NSAI) best estimate of the two licenses is 6.5 trillion cubic feet of natural gas with a geologic probability of success of 54% for Myra and 18% for Sarah.
ILDC Energy owns 43.6% of Myra and Sarah through subsidiaries Emanuel Energy Ltd. and Emanuel Energy Oil and Gas Exploration LP, Modiin Energy owns 29.2%, IPC owns 13.6%, and GGR owns 5%.
ILDC Energy's share price fell 4.6% in morning trading to NIS 0.72, giving a market cap of NIS 716 million, Modiin Energy's share price fell 4% to NIS 0.31, giving a market cap of NIS 720 million, and IPC's share price fell 3.8% to NIS 0.38, giving a market cap of NIS 70 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 5, 2012
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