The partners in the Tzuk Tamrur 4 oil exploration well today notified the Tel Aviv Stock Exchange (TASE) that they found oil at the well, north of the Dead Sea, but that it not yet known if the quantities found are commercial.
The partners are Delek Group Ltd. (TASE: DLEKG) subsidiaries Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L), together with Zerah Oil And Gas Explorations LP (TASE: ZRAH).
The Tzuk Tamrur 4 well drilled to a depth of 2,040 meters to the target strata.
The companies said, "The well reached the Triassic-era Gvanim strata. Preliminary analysis found that the target layer include oil-bearing sandstone. The well is now at a depth of 2,040 meters, and the partners intend to continue drilling to test another target strata, the Triassic-era Ra'af strata, and to stop drilling at a depth of 2,150 meters."
The companies cautioned that it was premature to estimate the size of the oil reservoir, and whether it was commercially viable. "When the drilling is complete, electrical logs will be conducted, which will take several days, after which an announcement will be made, including whether the partners decide if it is worthwhile to carry out well production tests."
Zerah, Delek Drilling, and Avner began drilling the Tzuk Tamrur 4 well in October 2009. The well was slated to reach a depth of about 2,000 meters at a cost of $4.5 million. Seismic studies conducted before the drilling indicated that the Zerah site had a closed structure promising 6.6 million barrels of high-quality oil.
Zerah owns half the Tzuk Tamrur 4 well, and Avner and Delek Drilling each own 25%. Zerah's share rose 21.3% in morning trading to NIS 0.16. However, Delek Group's share fell 2.7% to NIS 810.10, Delek Drilling's share fell 1.4% to NIS 9.24, and Avner's share fell 0.2% to NIS 1.57.
Published by Globes [online], Israel business news - www.globes-online.com - on January 24, 2010
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