Gulliver Energy Ltd. (TASE: GLVR) will drill the Shachar 1 exploratory well, subject to raising capital to finance the $10 million well. The company has already approved $8 million for the project.
Gulliver wholly owns the Shachar license, located in the Arava Valley near the Dead Sea. The exploratory well is targeting strata at a depth of 3,300 meters. The well is based on a report by Scottish company Dunmore Consulting Ltd., which gave a best estimate of 41 million barrels of oil with a 12% chance of geologic success.
Dunmore's estimate of recoverable oil in the Hatseva reservoir ranges from a low of 29.2 million barrels to a high of 56 million barrels. At $80 per barrel, the best estimate of 41 million barrels, Shachar is worth a gross $3.28 billion.
Drilling is scheduled to begin in November or December, and take three months.
Gulliver Energy's share price rose 7.2% by mid-afternoon to NIS 0.93, giving a market cap of NIS 180 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 16, 2011
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