Delek Group Ltd. (TASE: DLEKG) subsidiary Delek Energy Systems Ltd. (TASE: DEOL) has bought the 11.43% stakes of Premier Oil West Africa BV to two offshore oil exploration leases in Guinea Bissau, West Africa. The deal was made through Delek Energy’s wholly owned subsidiary Delek Energy International Ltd. The company undertook to pay 22.86% of drilling costs up to a cap of $13.3 million, and 11.43% of any addition drilling costs.
The Esperanca 4A and 5A and Sinapa Block 2 leases cover 4,900 sq.km. in shallow water 70-150 kms. offshore. Delek Energy said that Premier Oil found signs of oil in two exploratory drillings in the area. The drillings expanded knowledge of the area’s geology, but were not enough to know whether there are commercial quantities of oil in the leases.
Delek Energy said that the Guinea Bissau national oil company, Empresa Nacional de Pesquisa e Exploracao Petroliferas EP, has an option for 30% of the rights to the leases in the event that commercial quantities of oil are found, in exchange for repaying the partnership’s expenses. The work plan for the leases includes two drillings at an estimated cost of $58 million.
The Guinea Bissau authorities must approve the deal.
Published by Globes [online], Israel business news - www.globes.co.il - on February 11, 2007
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