Independent oil and gas company Noble Energy (NBL) announced that it has made a natural gas discovery in the Leviathan field offshore Israel. The well drilled under the Rachel license, encountered a minimum of 220 feet of net natural gas in several subsalt Miocene intervals.

Noble Energy is working jointly with other operators in the Leviathan field. In Leviathan, Noble holds a 39.66% working interest, Delek Drilling and Avner Oil Exploration have 22.67% each and Ratio Oil Exploration has a 15% working interest.

This new discovery Leviathan 1 is about 29 miles southwest of the Tamar discovery and 80 miles offshore Haifa at a depth of approximately 5,400 feet of water. The initial results from drilling the well confirm the pre-drill estimated resource range, with a gross mean for Leviathan of 16 trillion cubic feet. However, since this field is spread over 125 square miles, Noble will require to spud a few more appraisal wells to define the total gas resources of this field.

Noble Energy will continue with its plans and spud two more wells in Leviathan 1 to evaluate the possibility of finding gas at a deeper depth. The current discovery well is at a depth of 16,960 feet, while the company is scheduled to drill one well at a depth of 23,600 feet and another one at 8 miles northeast of the discovery well in early 2011.

Prior to the Leviathan discovery, Noble has made two significant natural gas discoveries in Israel. One of the discoveries Tamar was done  in January 2009, and the other one — Dalit — was done in March 2009. Noble has a 36% working interest each in both.

One of Noble Energy’s peers Anadarko Petroleum Corporation (APC) recently made discoveries of natural gas in the Offshore Area 1 of Mozambique’s Rovuma Basin and also in block BM-C-29, offshore Brazil.

Noble Energy currently retains a Zacks #3 Rank (short-term Hold rating). We maintain a Neutral rating on the stock.

Based in Houston, Texas, Noble Energy operates internationally and engages in the acquisition, exploration, development, production,and marketing of crude oil, natural gas and natural gas liquids.

 
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