24 September 12 10:39–The Sarah licensees yesterday announced the start of drilling of the Sarah 1 well to reach gas targets. The well has a budget of $70 million.
Geologists believe that the Sarah structure is a continuation of the gas field discovered at the Dalit license. This means that there is a high chance of a discovery, but also a relatively low amount of natural gas. Geologists’ best estimate for the Sarah structure is only 0.5 trillion cubic feet (TCF) of gas.
According to a Netherland Sewell & Associates Ltd. (NSAI) resources report, the Dalit discovery, made in March 2009, shortly after the Tamar discovery, has 0.27 TCF of gas.
A top market source, who is an expert in analysis, told “Globes”, “It is hard to see the Sarah well as worthwhile, irrespective of the dismal failure of the Myra well. I think that it’s a waste of time and money.”…Read More>>