Natural gas at 21 million cubic feet a day was discovered at the Isramco partnership’s Orr 1 site. This is the second significant discovery of natural gas in the last four months, after many dry years. The gas started flowing at noontime yesterday (Saturday).
The site in question is being explored by the giant British Gas (50%), Delek Drilling (8%), and Isramco (42%). British Gas joined the project only a few weeks ago.
The previous discovery occurred four months ago at the Noa 1 site. Both discoveries were made in deep water off Ashkelon beach, and are located only six kilometers from each other.
Isramco sources note that the quantities are only initial, coming from the upper stratum. Oil specialists estimate that the gas quantities at the Orr 1 site may increase when the lower stratum is opened up. Isramco is planning two more bores in the area.
The decision to drill the lower stratum will be made jointly by Isramco and British Gas. According to Isramco general manager Yossi Levy, the decision on whether the lower stratum should be opened up now or later, at the development stage, will be taken in the next few days.
Isramco is interested in cooperation with the Avner partnership, which controls the Noa 1 bore, to cut the costs of both parties. Isramco officials set the cost of commercial production at the Orr 1 site at $100 million.
The gas discovered at Orr 1, 36 kilometers off the Ashkelon beach to the west, is being burnt upon extraction. According to Isramco, the production test results have been positive and encouraging so far. At the same time, the gas flow rate and the size of the field may be determined only upon completion of all production tests.
The partners in Orr 1 have so far invested $8.5 million in the site.
Published by Israel's Business Arena October 31, 1999