Tests On Israel Leviathan Gas Field To Cost More, Take Longer

Posted: Wednesday, March 9, 2011

The Israeli partners of Noble Energy Inc. (NBL) in Israel 's largest natural gas field said Wednesday they have approved a work plan for drilling and production tests at the Leviathan field.

However, drilling at the field's larger well will cost $190 million, more than the original estimate of $150 million, because technical issues will require two more months of drilling, said Delek Drilling Ltd. Partnership (DEDR.L.TV), one of Noble's partners in the Leviathan field.

Drilling in the field's second well will cost $70 million, Delek Drilling said. This is the same as before but there will be some additional production tests costing $34 million.

Leviathan, which is located off Israel 's coast, is estimated to contain up to 16 trillion cubic feet of natural gas.

Noble Energy owns 39.66% of Leviathan, and Delek Group Ltd. (DLEKG.TV) units Avner Oil Exploration Ltd. Partnership (AVNR.L.TV) and Delek Drilling each own 22.67%. Ratio Oil Exploration Ltd. Partnership (RATI.L.TV)) owns 15%.

At 1035 GMT, shares of Delek Group were down 10.40 shekels ($2.90), or 1.18%, at ILS872.50; shares of Delek Drilling were down ILS0.18, or 1.45%, at ILS12.26; shares of Avner Oil were down ILS0.02, or 0.99%, at ILS2.21; and shares of Ratio were down ILS0.01, or 2.91%, at ILS0.534, in a higher Tel Aviv market.