BG International Limited, a subsidiary of BG plc, and Isramco Incorporated, have announced the successful testing of exploration well, Or-1, in the Med Yavne concession, 20 miles offshore Israel.

The well tested 21 million standard cubic feet of gas per day and was drilled at a water depth of 695 metres. The production rate was restricted by the testing conditions.

Or-1 was spudded in early October and another well, Or-South, 2.5 miles south of Or-1, is due to commence drilling following completion of Or-1. Isramco are currently the operator of Med Yavne, with BG taking over following this drilling programme, due for completion later this year.

Med Yavne is one of five Israeli offshore exploration licences in which BG acquired a 50 per cent interest from a group of Israeli companies and limited partnerships, led by Isramco Incorporated, on October 20. Isramco retains the operatorship for the blocks other than Med Yavne.

The total acreage covers an area of 2,000 square kilometres in the Mediterranean Sea. The licences are Med Yavne (Block 239); Med Tel Aviv (Block 240); Med Hadera (Block 241); Med Ashdod (Block 242); and Med Hasharon (Block 243).

The shareholders in the Med Yavne licence are:

BG International Ltd	50 per cent
Isramco Group	42 per cent
Delek Drilling Ltd	8 per cent

BG International also has a 70 per cent stake in a permit with priority right to explore for oil and gas offshore Israel, acquired in June this year. The other 30 per cent was farmed out to Middle East Energy (MEE), a consortium involving three Israeli companies, in September 1999. Seismic data is currently being acquired.

In addition, BG, along with MEE, has pre-qualified to bid for the exclusive right to develop the Israel Gas Company for transmission and distribution of natural gas throughout Israel. Tenders are due to be issued in early 2000.