Matra Petroleum plc (AIM: MTA), a Russian oil exploration subsidiary of Delek Energy Systems Ltd. (TASE: DEOL) unit reports that the Sokolovskoe Field in the Orenburg area of the Ural Mountains has 15.1 million barrels of contingent recoverable resources. The finding by Matra's energy consultant is less than expected when the company raised capital on London’s Alternative Investment Market (AIM) last year.
The results, from Energy Resource Consultants, are based on an in-depth geophysical and geological review conducted by Equipoise Solutions.
The net present value for 15 million barrels, based on 10% discount rate on $75 per barrel of Ural Blend oil for export, is $60-80 million.
The field's deterministic recoverable resources as currently mapped total 23.7 million barrels of oil, and its unrisked additional prospective recoverable resource is 84 million barrels, under the best-case scenario. These estimates are based on the geologic structure that has already been mapped, but cannot currently be included in Society of Petroleum classifications due to structural uncertainty and lack of well data in the northeast part of the field
Last May, Matra's share price fell 50% after it reported disappointing results at the verification well at the oil field. The 158-square kilometer Sokolovskoe license, near the Kazakhstan border, about 1,200 kilometers southeast of Moscow, is adjacent to producing oil fields.
Delek Energy wholly-owned subsidiary Delek International Energy Ltd owns 29.3% of Matra, after investing ₤6.1 million in the company in 2007, subsequently increasing the investment to ₤8.3 million. Yitzhak Tshuva-controlled Delek Group Ltd. (TASE: DLEKG) owns 78.92% of Delek Energy. Delek Energy is also the parent company of Tamar, Leviathan, and Yam Tethys partners Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L).
Delek Energy's share price rose 0.5% by mid-afternoon to NIS 1,457, giving a market cap of NIS 7.27 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on October 27, 2010
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