NewMed Energy exploration in Bulgaria finds dry hole

Delek Group (TASE: DLEKG) east Mediterranean energy exploration and production unit NewMed Energy (TASE: NWMD) has reported that its drilling at the Vinekh prospect in the Black Sea in Bulgaria’s economic waters has ended without success. NewMed’s share price fell 4.39% as a result yesterday.

NewMed said, “The drilling reached a final depth of approximately 3,230 meters below sea level, and insignificant signs of natural gas were discovered in the target layers. Therefore, in the partnership’s assessment, this is dry drilling.”

Tax Authority hands NewMed $198m tax bill

NewMed to drill for Bulgarian gas in Black Sea

NewMed is leading gas exploration in Bulgaria together with the Austrian oil company OMV (45% stake) and in a 10% partnership with the Bulgarian government, which has agreed to share the exploration risks in exchange for a share of the profits if gas is discovered in its waters. The exploration is being carried out as part of a concession called Khan Aspro, after the founder of the First Bulgarian Empire in the early Middle Ages.

The concession area had two potential reservoirs, Vinekh, which has now ended with dry drilling, and Krum, where NewMed is now searching for gas.

Krum is estimated to contain 110 billion cubic meters of natural gas – a reservoir similar in size to the Tanin and Karish offshore gas fields in Israel, but much smaller than the giant Tamar and Leviathan gas fields. Nevertheless, this is a very significant amount of gas for Bulgaria and the entire EU (where gas prices are much higher than in Israel), and is worth billions of dollars. According to estimates, the chance the probability of finding gas there is only 32%, with drilling to begin within a few weeks, and the results to be known within two months.

NewMed, managed by CEO Yossi Abu, holds the largest rights (45%) in the Leviathan gas reservoir, and led the negotiations to export gas to Egypt. NewMed’s share price has increased 68% in the past year and over the past five years has gained 600% and is currently trading at a market cap of NIS 22.7 billion. Yitzhak Tshuva’s Delek Group holds 54% of New Med’s participation units.

Published by Globes, Israel business news – en.globes.co.il – on February 5, 2026.

Source link