Shemen Oil and Gas Resources Ltd. (TASE: SMOG) plans to begin drilling the Yam 3 well in November, after obtaining permission from the Southern Regional Planning and Building Commission to drill the Yam 3 well, on the basis of the new petroleum guidelines. The Yam 3 well is located 15 kilometers west of Ashdod.
The permit was granted after the Ministry of Environmental Protection and the Ministry of Energy and Water Resources approved the well on the basis of the company's full environmental report. The approval was the last requirement the company needed for the well, after previously obtaining a permit from the Ministry of Defense.
The Yam 3 license has two geological structures where oil may be found: Yam and Bravo. On the basis of seismic surveys, Netherland Sewell & Associates Ltd. (NSAI) gives a best estimate of 120 million barrels of oil for the Yam structure, where the well will be drilled, and gives a best estimate of 107 million barrels of oil for the Bravo structure.
Shemen Oil has hired the Atwood Beacon rig to drill the well. In late August, the company estimated the cost of the well at $104 million. The company owns 90% of the rights to the Yam license, Zerah Oil And Gas Explorations LP (TASE: ZRAH) owns 5% and Azerbaijan's Caspian Drilling Company Ltd. owns 5%.
Published by Globes [online], Israel business news - www.globes-online.com - on September 4, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012