Rethink of Old Well’s Potential Near Dead Sea

(Reuters) -

An Israeli energy company looking to revive an old oil well near the Dead Sea said on Sunday a new resources report showed the field could hold reserves worth 1.2 billion shekels ($322 million).

Israel Opportunity said the report, prepared by Edinburgh-based Dunmore Consulting on the Hatrurim license, which covers 58 square miles, gives a best estimate of the field containing 7 million barrels of oil, while the high estimate is 11 million barrels.

Partners in the Hatrurim project include Zerah Oil and Gas, Gulliver Energy, Ashtrom Group and Cyprus Opportunity.

A previous group had drilled at the same spot and discovered oil in 1995, but determined the field was not worth developing due to low oil prices.

Israel Opportunity said it plans to push ahead quickly with development, using more advanced technologies and taking advantage of dropping service costs. It said the drilling budget was $5 million.