No gas at Myra 1 well

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Well operator GeoGlobal Resources reached the final target strata at a depth of 5,200 meters and no signficant signs of gas were found.

The Myra 1 well's Israeli partners - Israel Land Development Company Energy Ltd. (TASE: IE), Modiin Energy LP (TASE:MDIN.L), and IPC Oil and Gas Holdings Ltd. (IPC) (TASE: IPC) - have notified the TASE that no substantial signs of petroleum have been found. They said that well operator GeoGlobal Resources (India) Ltd. reached the final target strata at a depth of 5,200 meters and that logging while drilling tests during the drilling found that the high-quality sands at the Miocene-era strata were saturated with water.

The companies added that, at this stage, no drilling to oil-bearing strata has been carried out. At GGR's advice, the companies decided to conduct wire line logging, at a cost of $1.7 million, next week. Immediately after completing the logging, the rig will move to the site of the Sarah 1 well and begin drilling.

The companies do not attach great hopes to these logs, but insist that the final word on the matter has not yet been written. The notice stated, "The purpose of the logging is to provide a final answer whether hydrocarbons are present (in view of the fact that no substantial signs of petroleum were found and the probability is low), and will provide important geologic information, which will help the licensees analyze the geologic information at the Sarah license and other wells."

ILDC Energy, controlled by Ofer Nimrodi, owns 41.6% of the Myra and Sarah licenses, its parent company, Israel Land Development Company (TASE: ILDC) owns 5%, Modiin Energy, controlled by Tzahi Sultan and Nochi Dankner, owns 29.2%, IDB Development Corp. Ltd. owns 5%, IPC owns 13.6%, and Canada's GeoGlobal Resources Inc. (AMEX: GGR) owns 5%.

GeoGlobal CEO Paul B. Miller said, "We sidetracked this well in response to a previous loss of circulation event. Although no significant hydrocarbons were detected, the sidetracking was successful in drilling through the major geological markers in the basin. This information is critical to further refining our geological model for the block and the basin as a whole. We believe there are other potential gas targets at Myra, as well as the Myra High potential oil target that we have yet to evaluate. The company will use the information it has gained through the sidetrack to further evaluate the potential in Myra and to refine the existing geological model for the Sara-1 location. The company is looking forward to continuing its exploration program in Israel."