The partners in the Yam 3 well should be able to overcome the problems at the well within a few days believe well-informed sources. Yesterday, Shemen Oil and Gas Resources Ltd. (TASE: SOG) notified the TASE that drilling had been suspended because gas pressure in the borehole was too high.
Uncertainty about the future of the well, which has a budget of $116 million, sent the shares of the Israeli partners in it plummeting, although they partly corrected by midday today.
Shemen Oil owns 84.2% of the Yam 3 exploratory license, Zerah Oil And Gas Explorations LP (TASE: ZRAH) owns 7.5%, Zmiha Investment House Ltd. (TASE: TZMI) owns 3.34%, and well operator, Azerbaijan's Caspian Drilling Company Ltd. owns 5%.
Shemen Oil said in response, "When there is new information, we will announce it officially, as required."
Published by Globes [online], Israel business news - www.globes-online.com - on April 18, 2013
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