The head of an oil and gas exploration company, former chief of general staff Gabi Ashkenazi, announced evidence that high quality gas can be drilled in sea 3. Although the reserve includes more than a 100 million barrels of gas; the tests for oil production is expected to exceed 12 million dollars.
Is it possible to drill oil from the well? Photo Credit: Reuters
An oil and gas exploration company reported this morning about the signs of gas that were revealed in recent days in sea 3 existing off the shores of Palmachim. It is estimated that the reservoir includes more than a 100 million barrels of high quality gas.
According to the announcement, headed by former chief of general staff Gabi Ashkenazi, drilling operators performed tests at a depth of 5,700 meters, which examined the reservoir rock properties. Tests revealed old signs of oil drilling under a significant layer of 68 meters, about 5175 meters below sea level.
Now the oil company intends to arrange tests on the ability of oil production based on the reserves found. The estimated cost for the oil production tests is expected to exceed 12 million dollars and will take a number of weeks. At the end of the tests, investors in the company are expected to receive complete information about the value of the reservoir and the economic feasibility of oil production.
Two weeks ago, the company announced that there are significant signs for the possibility of easy oil. Following the announcement, their stock value soared to no less than 7 percent.