Exploration/Development news briefs, July 26

Santa Fe Snyder � Isramco � BG International � Isramco Negev 2 � Naphtha Israel Petroleum � Naphtha Explorations � IOC Dead Sea � Delek Drilling � Clal Industries & Energy � Dor Chemicals � Israel Petrochemicals ... Russian PSA legislation

Isramco Inc., operator of the Nir-1 well off Israel, said the well had reached a depth of 1,900 m, and analysis of the logs indicates the existence of a gas reservoir. Partners in the well approved a budget of $2.9 million for production tests and $1.9 million to deepen the well to check for the possibility of an additional gas reservoir. Interests in the block are BG International Ltd., 40%; Delek Drilling LP, 21.766%; Isramco Negev 2 LP, 19.13693%; Clal Industries & Energy, 5.2%; IOC Dead Sea LP, 5.05248%; Dor Chemicals, 2.4%; Israel Petrochemicals, 2.4%; Naphtha Explorations LP, 1.84107%; Naphtha Israel Petroleum Corp., 1.84107%; and operator Isramco Inc., 0.36244%.

Santa Fe Snyder Corp., Houston, said its Sellers 119 No. 1 exploratory well, a 6-mile step-out, has "significantly" extended the prospective area of its Lost Peak project in Howard County, Tex. The well targeted Cisco Canyon sandstones that Santa Fe Snyder is currently exploiting in its Signal Peak field 6 miles to the northwest. The Sellers well encountered 115 ft of gross pay sand with productive gas shows over a 200 ft interval.

Russian President Vladimir Putin has called on his government to speed up the enactment of production-sharing legislation, Minister of Economic Development and Trade German Gref told reporters in Moscow July 20. Gref said Putin "has authorized [the cabinet] to prepare the legal basis for the agreement on production-sharing within the shortest possible time and, with its help, to launch the maximum number of projects." Gref also commented that the Sakhalin-1 and Sakhalin-2 projects have not been completely beneficial to Russia because they were the first PSA projects to be implemented.

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