Geologists believe any higher estimate for the Cypriot field bodes well for more finds in neighboring Israeli fields such as Leviathan.
25 October 12

Noble Energy Inc. (NYSE: NBL) believes Cyprus’s Block 12 offshore field contains much more than the 7 trillion cubic feet (TCF) that it estimated in May.

Cyprus manager John Tomich told a press conference in Nicosia yesterday, “We made that nice discovery of 7 TCF but we think there is a lot more potentially there and we will be chasing additional gas fields.”

Tomich also said that Noble will be looking for oil beneath the natural gas strata but observed that the probability for oil is “small but not zero.”

Geologists involved in Israeli offshore drilling believe that Noble’s optimistic statements about Block 12 bode well for estimates that the Levant basin contains more gas than has so far been found. One geologist told “Globes,” “The discoveries at Tamar and Leviathan have a clear geological connection to Pelagic and Block 12 so that ultimately additional quantities of gas in the Leviathan license will be found.

Tomich also said that Noble is in talks with the Cypriot government on establishing a liquefied natural gas (LNG) terminal on the Cypriot coast and added that this terminal could also handle gas from neighboring fields. He said, “Something that is very important for the government and for Noble is the fact that this LNG plan will be expandable to handle additional volumes of gas that could be found in other blocks. So it will be an open access plan and gas could be coming either from Block 12 if we are able to find additional gas, or from other operators in Cyprus or indeed maybe there is gas that would be coming from Israel over time as well,” he concluded.

The news of extra gas in Block 12 is also welcome for Delek Group Ltd. (TASE: DLEKG) units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling Limited Partnership (TASE: DEDR.L) which each own 15% of the Block 12 license. Noble Energy holds the balance of 70%.

Published by Globes [online], Israel business news – – on October 25, 2012