Shemen Oil and Gas Resources Ltd. (TASE: SOG) today announced that "significant signs" of natural gas, and probably also oil, have been found at the Yam 3 well offshore from Ashdod. The company has not disclosed the size of the field discovered, which will require more tests, but says that the upper target strata have a thickness of 90 meters, and that they contain "significant signs of hydrocarbons (condensate, natural gas and the possibility of light oil)."
For the sake of comparison, the thickness of the gas-bearing strata at the Tamar discovery is 140 meters.
Shemen says that the drilling has not been completed, and that "only preliminary indications have been obtained." It adds, "The size and economic worthwhileness of the reserve cannot yet be determined."
The Yam 3 well will reach its final target strata in a few days, after which the well operator will carry out the full logging. When they are completed, it will be possible to answer the main question: whether the field is economically worthwhile.
Shemen said that the licensees had not yet decided whether to carry out production tests at the well. A decision on these tests will be made when the drilling and analysis of the logging are completed.
Shemen owns 77.69% of Yam 3, Zerah Oil And Gas Explorations LP (TASE: ZRAH) owns 7.5%, well operator Caspian Drilling Company Ltd. owns 10%, and Zmiha Investment House Ltd. (TASE: TZMI) owns 4.81%.
The Yam 3 well is located 16 kilometers west of Ashdod. The well's budget will total $150 million, not including production tests, which are estimated at $12 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 26, 2013
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