After the completion of electric tests by well operator Noble Energy Inc. (NYSE: NBL) indicate commercial quantities of gas in the Dalit 1 prospect offshore from Hadera, the partners in the well are expected to approve an investment of up to $15 million in gas production tests. The partners are 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).
Production tests will better estimate the natural gas reserves at the Dalit prospect, and measure the rate of gas flow. Preliminary estimates indicate that the natural gas reserves at Dalit total about 20 billion cubic meters.
This is far less than the Tamar field off Haifa where production tests published in January indicated there could be vast reserves of up to 142 million cubic meters.
Nevertheless, these are commercially viable quantities and sources at Noble Energy say that if the additional tests prove the presence of the gas it could be on stream by 2012. Drilling the well will cost the partners an estimate $50 million.
Published by Globes [online], Israel business news - www.globes-online.com - on March 30, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009