Leviathan partners: 10% chance of 21 TCF of gas

The high-end estimate is 25% larger than the previously announced 16 trillion cubic feet of natural gas in the structure.

The Leviathan partners have announced that the high-end estimate of contingent natural gas reserves in the structure is 21 trillion cubic feet. The figure is not a major change from the previous estimates, but suggests the reserve's upside potential.

Findings by Leviathan 1 exploratory well indicated the presence of 16 trillion cubic feet of gas - the best estimate with a 50% chance of success; the current high estimate indicates 10% chance that the reserves are 25% larger than earlier estimated. The low estimate of 10.5 trillion cubic feet has a 90% chance of success.

More accurate figures are expected from the Leviathan 2 and Leviathan 3 verification wells. The Pride North America rig is drilling the Leviathan 2 well and the Sedco Express is continuing drilling the Leviathan 1 well to the deeper oil bearing strata.

The natural gas is in the first target strata, at a depth of 5,100 meters. The 3D seismic survey of the Leviathan structure indicates that the second target strata (the first strata that main contain oil), at a depth of 5,800 meters, may have three billion barrels of oil with a 17% chance of geological success. The third target strata, at a depth of 7,200 meters may have 1.2 billion barrels of oil with an 8% chance of geological success.

Noble Energy Inc. (NYSE: NBL) owns 39.66% of Leviathan, Delek Group Ltd. (TASE: DLEKG) units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L), each own 22.67% and Ratio Oil Exploration (1992) LP (TASE:RATI.L) owns 15%.

The news sent the share prices of Leviathan's partners down, after they had risen in morning trading. Delek Group's share price fell 0.8% to NIS 895.10, Avner's share price fell 2.5% to NIS 2.41, Delek Drilling's share price fell 0.6% to NIS 13.55, and Ratio's share price fell 0.5% to NIS 0.59.

Published by Globes [online], Israel business news - www.globes-online.com - on March 29, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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