Drilling to Begin at Dead Sea Natural Oil Reserve

JERUSALEM, Israel – In 1997, the late Texas oilman Harold "Hayseed" Stephens acquired a drilling company, which he renamed Ness Energy International, a reference to the Hebrew word for miracle. Stephens believed there was a sizable oil field along the southwest corner of the Dead Sea. He hoped his company would tap into that oil reserve, but it never did.

Now, a new report released over the weekend says a natural oil reserve near the Dead Sea may contain up to 11 million barrels of oil worth an estimated 1.2 billion shekels ($320 million).

Dunmore Consulting, who released the report, said there's a 100 percent certainty of oil being found because drilling more than two decades ago produced oil from the reservoir, the Israeli daily Haaretz reported.

The Ministry of National Infrastructures, Energy and Water Resources approved an application, submitted last October, from Israel Opportunity Energy Resources Gas and Oil Exploration.

The new Hatrurim license covers 94 square kilometers near the Dead Sea, where Delek Group Ltd. discovered oil 2 kilometers (approximately 4 miles) below the surface in 1995. At the time, they and drilling partner, Avner Oil and Gas LP, decided not to develop the reserve because of low oil prices.

Zerah Oil and Gas Explorations, Gulliver Energy Ltd., Cyprus Opportunity, Ashtrom Properties Ltd. and a company led by geologist Dr. Eliyahu Rosenberg hold varying percentages of interest in the license.

Following ministry approval, the group plans to restart drilling with an initial budget of $5 million (approximately 18.5 million shekels).