Reserves upgrade for Mary, Tamar

Delek Drilling has updated its deep and shallow water gas development activity offshore Israel.

Offshore staff

TEL AVIV -- Delek Drilling has updated its deep and shallow water gas development activity offshore Israel.

This past July, a third party reserve report revealed 2P (proved and probable) reserves at the Tamar field in the Levantine basin of up to 7.7 tcf (218 bcm). On March 28 this year, the partners, led by operator Noble Energy, announced the purchase of additional equipment and for further development of Tamar totaling $157 million.

On Feb.19, the partners also signed a letter of intent to supply natural gas to Southern Power Station and DSI Silica Industries Dimona. The partners have so far signed agreements totalling over $11 billion to supply natural gas following commercialization (start-up), anticipated in 2012.

The partnership also confirmed it would drill two further production wells in the near-shore Mary gas fields, in areas known as Mary-B 8 and Mary-B 9, at a total cost of around $85 million.

In March, a study by NSAI assessed proved natural gas reserves at Mary B of 13.3 bcm an increase of about 1.9 bcm (67 bcf) compared with previous estimates; and proved and probable natural-gas reserves totalling 14 bcm (494 bcf), an increase of 1.2 bcm (43 bcf) compared with previous estimates.

Delek and Noble Energy are pursuing further seismic studies in the surrounding area, and expect to receive the results in the next few months.

06/02/2010

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