The following updates are based on information released by Delek Group gas subsidiaries, Delek Energy Systems Ltd., Avner Oil & Exploration L.P and Delek Drilling L.P. All financial and business information is given only for the convenience of the reader. The only official financial and business information, is that which is included in the officially published immediate reports and financial reports of Delek Group and its gas subsidiaries, to the Israeli Securities Authority and the Tel Aviv Stock Exchange, in Hebrew. In the event of any conflict between financial and business information given on this site and the Hebrew published immediate reports, the Hebrew published immediate reports shall prevail. More on Delek Group's disclaimer.
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|Comment on Reports in the Press on Leviathan 2 Evaluation Drilling|
Tel Aviv, August 28, 2012. With regard to the various reports published today in the Israeli media concerning the sealing and abandonment of Leviathan 2 evaluation drilling, the partnerships announced that the Operator, Noble Mediterranean Energy, in conjunction with external professional consultants in coordination with the Israeli Department of Energy and Water, considered different alternatives for sealing and abandoning the drill operations and recommended to the partners a plan for sealing and abandonment with the highest estimated probability of success option.
The drilling will be carried in the coming days by the Ensco 5006 rig and it is expected to last for approximately two months at an estimated cost of $46.6 million (for 100%). It should be noted that due to complexity and uniqueness of the plan, there might be a significant deviation to the above-mentioned estimate. In addition, it should also be noted that the partnerships are covered with "control of well" insurance that covers well takeover expenses, including expenses for re-drilling and including the sealing and abandonment operations as mentioned above, with a limited liability of up to 200 million (for 100%) per case. As of the date of this report, the Leviathan partners have received a refund from the insurance companies for the amount of approximately $53 million (for 100%).
It is further noted that the operator estimates, abundance of water from the drilling does not cause environmental damage.
For more information please see the immediate reports as published on TASE. http://maya.tase.co.il/bursa/indeximptoday.htm