Connect with us

Hi, what are you looking for?

Jewish Business News


Israeli Shemen : “significant signs” of oil and gas at Yam 3

The company stresses that upper target strata have a thickness of 90 meters.

Tamar,    The Natural Gas Production Platform / Getty

Tamar, The Natural Gas Production Platform / Getty

/ By Kobi Yeshayahou /

The Israeli company Shemen Oil and Gas Resources Ltd. (TASE: SOG) today announced that “significant signs” of natural gas, and probably also oil, have been found at the Yam 3 well offshore from Ashdod. The company has not disclosed the size of the field discovered, which will require more tests, but says that the upper target strata have a thickness of 90 meters, and that they contain “significant signs of hydrocarbons (condensate, natural gas and the possibility of light oil).”

For the sake of comparison, the thickness of the gas-bearing strata at the Tamar discovery is 140 meters.
Shemen says that the drilling has not been completed, and that “only preliminary indications have been obtained.” It adds, “The size and economic worthwhileness of the reserve cannot yet be determined.”

The Yam 3 well will reach its final target strata in a few days, after which the well operator will carry out the full logging. When they are completed, it will be possible to answer the main question: whether the field is economically worthwhile.

Shemen said that the licensees had not yet decided whether to carry out production tests at the well. A decision on these tests will be made when the drilling and analysis of the logging are completed.

Shemen owns 77.69% of Yam 3, Zerah Oil And Gas Explorations LP (TASE: ZRAH) owns 7.5%, well operator Caspian Drilling Company Ltd. owns 10%, and Zmiha Investment House Ltd. (TASE: TZMI) owns 4.81%.

The Yam 3 well is located 16 kilometers west of Ashdod. The well’s budget will total $150 million, not including production tests, which are estimated at $12 million.

Published by

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.



You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...


The contract signed between the Israeli government and Pfizer shows clearly and unequivocally that this is a clinical study on humans - The agreement...


After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...


Now Platika joins and elite club of $10 billion plus Israeli firms.