Drilling for oil at the Kallirachi field, off the island of Thassos in the northern Aegean, has given local company Kavala Oil fresh hopes after the recent discovery and cementing of a new well at a depth of 5,250 feet. The well is to be checked later once the fast-paced process is complete. The particular spot was recommended for drilling by the International Institute of Oil Research, based in Denmark, and by Greek universities which received samples of the experimental oil wells in the area, where three deposits were found earlier this year. One of the wells, drilled to a depth of 8,386 feet, intersected 200 feet of net oil pay, while the others ranged between 50 and 62 feet. Large quantities of natural gas were also revealed. Each drill at Kallirachi costs up to $30 million. Initial combustion tests showed that the deposits can be profitable but a series of partial scientific studies is required before Kavala Oil continues its operations to begin commercial operations. The available data indicates that the Kallirachi field may have more oil reserves than does neighboring Prinos, and supply as many as 35,000 to 40,000 barrels a day. According to the Danish institute’s report, announced by Kavala Oil’s majority shareholder Regal Petroleum Plc, Kallirachi’s oil deposits may reach up to 1 billion barrels. At Prinos, Kavala Oil are hoping production will reach the consortium’s conservative target of 7,000-8,000 barrels a day by year’s end, from a current low of 1,500-2000 barrels. The recent rise in oil prices has rendered the tapping of the wells more economically viable, with satisfactory margins.