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Israel's Delek to explore US GoM

OE Staff Monday, 08 January 2018 17:43

Israel's Delek Group is setting the firm's exploration sights on US offshore, particularly in the shallow waters of the Gulf of Mexico.

The firm announced a strategic partnership with GulfSlope Energy and Texas South Energy. The companies say that Delek subsidiary, Delek GOM Investments, will acquire rights to a 75% record title interest in nine prospects (Photon, Quark, Pomeron, Tau, Tanker, Graviton, Tachyon, Selectron, and Canoe). GulfSlope will retain a 20% record title interest and Texas South will retain a 5% record title interest in each of these nine prospects.

The companies add that Delek shall bear 90% of the gross cost and expense for each well until the test well reaches its objective depth. Thereafter, Delek will be responsible for 75% of the costs and expenses and GulfSlope and Texas South will be responsible for pro-rata ownership interest of all such remaining costs and expenses. In addition, Delek shall pay US$1.5 million to the two companies (73% to GulfSlope and 27% to Texas South) upon the filing of each well's exploration plan with the US Bureau of Ocean Energy Management (BOEM).

"GulfSlope and Texas South are pleased to have Delek join with us to drill our exciting portfolio of prospects in the US Gulf of Mexico which we estimate to contain almost 1 billion barrels of recoverable oil and gas equivalent," stated John Seitz, Chairman and CEO of GulfSlope and Michael Mayell, President and CEO of Texas South. "Our partnership brings together management and technical teams who have enjoyed great success in discovering and developing world class fields. This partnership is designed to create significant shareholder value through new field discoveries and production from high quality conventional reservoirs."

Initially, the three companies will participate in two exploration wells at the Tau and Canoe prospects, which the two companies estimate to contain more than 300 MMboe in the aggregate. 

The Canoe prospect will target multiple shallow supra-salt formations, whereas the objectives for the Tau prospect are multiple deeper, sub-salt formations, the companies say. GulfSlope will be the operator for these wells.

The companies anticipate that drilling operations will follow in mid-2018. 

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2018-10-17 08:14:34am