Globe Exploration LP (TASE: GLEX.L) has received from the Geophysical Institute of Israel a reprocessing of seismic mapping data of the onshore Ofek licenses, which the company says show "an inclined block geologic structure with an area of approximately 50 square kilometers".
The previous seismic mapping of the license said that there was a 30-square kilometer structure; today's notice to the Tel Aviv Stock Exchange (TASE) implies a potentially larger natural gas-bearing structure. Globe Exploration did not say whether there were any indications of the potential quantity of natural gas in the structure, its geologic probability, or economic viability.
Globe Exploration said, "According to the previously published evaluation from 1995 by foreign experts, and on the basis of prior information about the 30-square kilometer structure, the gas reserves in the structure could reach 1.5-1.8 trillion cubic feet, which requires verification by an exploratory well and production tests."
For the sake of comparison, the Tamar license has 8.7 trillion cubic feet of gas.
Globe Exploration plans to drill an exploratory well to a target depth of 2,500 meters to the gas-bearing strata
Globe Exploration wholly owns three onshore licenses, which were transferred to the partnership by its general partners: the 393-square kilometer Ofek license in the Shfela area; the 266-square kilometer Bar-Or license in the western Galilee; and the 295-square kilometer Yahel license in the Shfaram area of the lower Galilee.
Globe Exploration share price fell 1.2% in morning trading to NIS 0.084, giving a market cap of NIS 123 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 30, 2010
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