The cost of the drillings was $21 million of which Delek Energy's share was $5.25 million.
Delek Group Ltd. (TASE: DLEKG) subsidiary Delek Energy Systems Ltd. (TASE: DEOL).
Delek Energy is a partner in Premier Oil Vietnam Offshore BV, along with Premier Oil plc (LSE: PMO) and Santos, which own 37.5% each. The company announced today that the Chim Ung -1 well was drilled to a total depth of 3,735 meters, penetrating the target Dua reservoirs. The reservoir quality is slightly better than expected. The well was sidetracked to drill the adjacent Chim Boi fault block and encountered oil shows. The well is being plugged and abandoned and the rig will now move to drill the Chim Cong (Peacock) prospect. Significantly, this well confirmed that oil has charged structures in this southern part of the company's acreage.
Premier Oil CEO Simon Lockett said, “Whilst Chim Ung and Chim Boi may not be commercial on their own, they confirm the oil charge potential across the southern part of Block 12W which which is very encouraging for our exploration programmes here and in our contiguous Block 7/03 acreage."
The cost of the two drillings is $21 million of which Delek Energy's share is $5.25 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 8, 2008
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