Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) has obtained a one-month extension, to March 15, from the Petroleum Supervisor to submit an agreement for exploratory drilling in the Shimshon license offshore from Ashkelon. This is Isramco's second postponement; in December 2010, it obtained a delay until the end of January to submit an agreement.
Six months ago, Isramco said that the reprocessed results of a 3D seismic survey of the Shimshon license found sand strata in the southern part of the prospect "are likely to contain gas similar to other prospects in the Nile Delta where gas has been found." The US consultant who reanalyzed the data estimated gas reserves at Shimshon at 1.5 trillion cubic feet (43 billion cubic meters), with a 15% chance of geologic success. The estimated quantity of gas is substantially less than the quantity of gas at Tamar, but 20% more than at Yam Tethys, 50 kilometers to the east.
Isramco owns 79% of Shimshon. Its affiliates INOC-Dead Sea LP (TASE: HLDS.L) and Naphtha Explorations Ltd. (TASE:NFEX.L) each own 10%, and Israel Oil Company owns 1%. Isramco owns 28% of Tamar and Dalit.
Isramco's share price rose 2.1% in morning trading on the TASE to NIS 0.389, giving a market cap of NIS 4.32 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on February 16, 2011
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