Leviathan 1 well now drilling toward oil target

Leviathan's partners believe that oil may be found in the deeper strata.

Sources inform ''Globes'' that the Leviathan 1 exploratory well yesterday began drilling to the first oil-bearing strata. The drilling is expected to reach these strata within a month, after which it will continue to the second, deeper oil-bearing strata.

Noble Energy Inc. (NYSE: NBL) has said in the past that the well would drill toward the two oil-bearing strata during the first quarter of 2011.

Noble Energy estimates, on the basis of the 3D seismic survey of the structure, that there is a 17% chance of geologic success of finding three billion barrels of oil in strata at a depth of 5,800 meters, and an 8% chance of geologic success of finding 1.7 billion barrels of oil in strata at a depth of 7,200 meters.

Professional sources say that the discovery of natural gas reserves in the first target strata, at a depth of 5,100 meters, does not alter the probabilities of finding oil in the deeper strata, because they have never been drilled before.

Noble Energy owns 39.66% of licenses in Leviathan, Delek Group Ltd. (TASE: DLEKG) units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) each own 22.67%, and Ratio Oil Exploration (1992) LP (TASE:RATI.L) owns 15%.

Published by Globes [online], Israel business news - www.globes-online.com - on January 6, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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