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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|Sealing of Leviathan 2 Evaluation Drill and Leviathan 4 Appraisal Drilling – Sunday, 11 November 2012|
Tel Aviv, November 11, 2012. According to the information provided by the operator, Noble Energy Mediterranean, Delek Group gas partnerships announced that the Ensco 5006 rig has completed the planned work for sealing the Leviathan 2 evaluation drill which has resulted in halting the water flowing from it. In the coming year, in coordination with the Ministry of Energy and Water Resources, the operator is planning to carry out monitoring activities in order to evaluate the sealing efficiency and the need to perform additional actions (as will be required), thus enabling final abandonment of the Leviathan 2 drilling. The operator estimates a total cost of the undertaken works (including standby expenses of the rig and monitoring activities) at approximately $85 million (for 100%). It should be noted that the partnerships are covered with insurance which includes the sealing work 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 work implemented so far which was claimed for from the insurance companies.
In addition, the partners in Leviathan announced that Leviathan #4 appraisal well is due to start in the coming days and is expected to last for approximately 4 months at an estimated budget of $110 million (100%). The Leviathan natural gas field is spread over a wide area and therefore it requires a number of appraisal wells. It should also be noted that Leviathan 4 is expected to be used in future for production drilling, as part of the future development plan of Leviathan. The expected depth of the well is approximately 1,600 meters, and the planned final drilling depth is approximately 5,300 meters beneath sea level.
For more information please see the immediate reports as published on TASE. http://maya.tase.co.il/bursa/indeximptoday.htm