Delek Drilling & Dorgaz to Participate in Ashkelon Prospect

Delek Drilling and Dorgaz will participate in Isramco's Nir 2 prospect offshore Ashkelon, Israel. The drilling is estimate to cost $10.5 million. Isramco owns 67% of the prospect.

Naphtha Israel Petroleum and Israel National Oil Company (INOC), both affiliated with Isramco and which jointly own 8.5% of the prospect, also announced they would participate in the drilling. Delek Drilling owns 21% and Dorgaz 1.8% of the prospect. Other partners in the prospect, including Sonol and Middle East Energy (MEE) decided not to participate.

The Nir 2 well follows the Nir 1 well in the Med Ashdod concession were natural gas was discovered. The reservoir is near the Yam Thetis' Mary concession which also found natural gas.

Several weeks ago, Isramco announced it would drill at Nir 2 even without its partners' consent. Isramco gave its partners 30 days notice to declare their participation in the drilling.

Israel Electric Corporation has refused to reach a purchasing agreement with Isramco until it can prove it owns larger natural gas reservoirs. The Nir 2 drilling is therefore critical for Isramco.