Delek Group Ltd. (TASE: DLEKG) subsidiaries Delek Drilling LP (TASE: DEDR.L) and Avner Oil and Gas LP (TASE: AVNR.L), as well as Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L), today notified the TASE that preliminary results at the Dalit-1 well, offshore from Hadera, found sands containing natural gas. The companies stated, "We're talking about preliminary indications only, and the presence of a natural gas reservoir and/or its size and/or economic feasibility have not yet been determined."
They added, "When more information from the drilling operation is received, the partnership expects to make another announcement in a few days, including whether the partnership has decided to conduct production tests at the site."
The report, despite the caveat, sent the share of Delek Group up 8.3% to NIS 338.90. Delek Drilling's share rose 8.4% to NIS 3.65, Avner Oil's share rose 5.2% to NIS 0.62, and the share of their direct parent company, Delek Energy Systems Ltd. (TASE: DEOL) rose 6.2% to NIS 336.10. Isramco rose 5.9% to NIS 0.50, after the share rose 3.4% on Nasdaq on Friday to $42.99.
The company's partner, Noble Energy Inc. (NYSE: NBL), began drilling the well three weeks ago. Noble Energy notified its Israeli partners that the Dalit-1 well reached a depth of 3,660 meters and that it has begun to carry out electric tests to obtain preliminary indications about the strata and the natural gas therein.
The Dalit-1 well is located 60 kilometers offshore from Hadera. The well is planned to reach a depth of 3,800 meters, over a two-month operation at a cost of $50 million. Sources estimate a 40% chance the Dalit prospect could have 20 billion cubic feet of natural gas, higher than the 35% chance given for the Tamar prospect, where commercial quantities of natural gas were found in January.
Rumors about the possible gas discovery had been circulating for days. Delek Energy CEO Gideon Tadmor declined to respond to "Globes'" inquiries, while Delek Drilling CEO Avi Greenfeld referred to the notice to the TASE, adding that drilling was continuing normally. Sources close to the well said that they were still studying the results.
Noble Energy, Delek Drilling, Avner Oil, and Isramco are all partners in the Tamar prospect.
Published by Globes [online], Israel business news - www.globes-online.com - on March 29, 2009
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