Offshore staff

TEL AVIV, Israel -- Delek Drilling and Avner Oil Exploration have issued an update on Noble Energy’s deepwater exploration program in the Levantine basin in the eastern Mediterranean Sea.

Noble decided to halt operations on the Leviathan 2 well and drill an alternate appraisal well nearby. Leviathan 2 had reached a depth of around 4,570 m (14,993 ft), hundreds of meters above the targeted layer (NG10).

During drilling, a flow of water behind the casing to the seabed was identified in the well. Noble believes, however, that the sand layer from where the water was flowing will have no geological impact on NG10, nor on the contingent resources of the Leviathan discovery.

The company monitored the water flow and saw no indication of hydrocarbons. Due to the potential impact on the integrity and stability of the drilling systems, the well was deemed unsuitable for continued drilling, hence the decision to move to the new location.

Drilling of the new well should start within a month and last for around three months, at a total cost of roughly $70 million.

To date, Leviathan 2 has cost $42 million. Noble Energy Mediterranean has a 39.66% interest, in partnership with Delek Drilling (22.67%), Avner Oil Exploration (22.67%), and Ratio Oil Exploration (1992), with 15%.

05/16/2011