Well drilled by CDC on Israel shelf appeared to be dry

  The oil exploration works on the Yam-3 offshore section west of Ashdod field have brought no results. The project, which cost $175 million, has brought nothing, but losses to the investors, which include Georgia’s native Avraam Nanikashvili.

The project operator Caspian Drilling Company, which is owned by State Oil Company of Azerbaijan (SOCAR), announced this news to its partners on October 13, 2013. Globes wrote that the operator claims that the exploration well appeared to be a dry hole, which means that commercial volume of oil is unavailable on this section.

On the same day Shemen Oil & Gas Resources company, (owns 77.8% rights to this section) big bloc of shares of which is held by Nanikashvili and Israel’s Financial Levers company, co-owner of which is Nanikashvili (chairman of Board of Directors is Semen Veinshtok) made a statement for public about results of the exploration works. The company has decided to inform the shareholders before the formal end of the test, which usually starts after removal of the drilling equipment from the platform. As a result of that since beginning of auction on October 14, 2013, price of its shares dropped by 96%.

IzRus portal reported that till the last moment Shemen’s shareholder had reasons for optimism. It has been announced recently that oil on Yam-3 section, which lies on the depth of about 5175 meters, has high quality. The exploration works on the section cost $175 million. The drilling was stopped on the depth of 5700 meters. The US NSAI company has initially evaluated the oil potential of Yam-3 at 120 million barrels. The project partners still have some chances to discover natural gas on the section.—0--