Cyprus-based Energean E&P Holdings Ltd. has farmed-in and taken over as operator of the Sara and Myra license blocks about 25 mi. off the coast of Israel. [shaded blue in map at right]
Six of the seven partners agreed to the farm-in, including Modiin Energy Limited Partnership, IDB Development Ltd., Israel Land Development Co. Ltd., Emanuel Energy Ltd., Emanuel Energy – Oil & Gas Exploration ‐ Limited Partnership and I.P.C Oil and Gas (Israel) Ltd. Partnership. GeoGlobal Resources (India) Inc. did not sign the agreement.
The partners agree to transfer 25% of their pro-rated shares to Energean, and 5% to Ratio Oil Exploration, which arranged the farm-in.
When the agreement is finalized, the resulting partnership shares will be: Energean 25%; Ratio 25%; ILDC Energy (through Emanuelle Energy) 17.1%; Modiin Energy LP 13.838%; IPC Oil and Gas Holdings 6.447%; Israel Land Development 5%; GeoGlobal 5%; and IDB Development 2.655%.
The Myra (347) and Sara (348) licenses are west of Netanya, and south of the Dalit license, and cover approximately 310sq mi. in the Levantine basin. Following a 3D seismic survey over the blocks in 2010 and seismic mapping in 2011, the leases had a best estimate of 6.5 TCF of natural gas.
Prior drilling
In 2012, then-operator GeoGlobal Resources used the Noble Homer Ferrington semisubmersible to drill the Myra-1 well in 1500m (4921ft) water depth. After sticking pipe and losing circulation in August 2012, the partners sidetracked the well to 5200m TVDSS in September. The well intersected water-saturated Miocene sands with no significant hydrocarbon shows, was logged, plugged, and abandoned.
The rig was moved to the Sara-1 location about 60km off the coast, in 1400m of water, and spudded on 20 September 2012. The well was drilled vertically to 3928m TVDSS, and encountered about 98m of high-quality reservoir sands in the lower Miocene and upper Oligocene which had good porosity and permeability. However, the sands were wet and the well was abandoned at the end of October.
Paul B. Miller, President and CEO of GeoGlobal, said "The result from the well did not meet our expectations but we believe there are additional prospects in the Myra and Sara licenses and the basin."
Despite the disappointing results, the blocks are close to the recent Tamar 1, Tamar 2, and the Dalit natural gas discoveries made by Noble Energy, and continue to attract interest.
The new players
Energean is part of a Greek energy exploration group, focusing on the Mediterranean Sea and North Africa, with activity in Greece and Egypt. Energean has formed an energy exploration joint venture with international offshore drilling contractor Ocean Rig UDW Inc., based in Athens, Greece.
Ocean Rig has two Bingo 9000-design semisubmersibles, seven Saipem 10K-design ultra-deepwater drillships, and four more UDW drillships under construction at Samsung Heavy Industries yards in South Korea.
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