Ratio, Isramco find gas at offshore Or-1 license

The license has a best estimate of 42.4 billion cubic feet of natural gas, a fraction of the Tamar and Leviathan discoveries.

Ratio Oil Exploration (1992) LP (TASE:RATI.L) and Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) today notified the TASE that their Or 1 license in the Med Yavne prospect has a best estimate of 42.4 billion cubic feet of natural gas with a 50% probability, according to Netherland, Sewell and Associates Inc. (NSAI). The low estimate is 28.9 billion cubic feet with a 90% probability and the high estimate is 59.9 billion cubic feet, with a 10% probability.

Ratio Oil Exploration (1992) LP (TASE:RATI.L) owns 12.3% of Or-1, Isramco and its affiliates own 62%, Israel Petrochemical Enterprises Ltd. (TASE:PTCH) owns 5.5%, and Dor Chemicals Ltd. and its affiliate Dor Gas Exploration LP own 5.4%.

The Med Yavne covers 52 square kilometers in shallow water (700 meters deep) 39 kilometers west of Ashdod. It is north of Yam Tethys. Isramco, the well operator, began drilling in the license in October 1999. The exploratory well found gas-bearing sands in the Pliocene Yafo formation at a depth of 2,020 meters.

The Or-1 discovery is small; Tamar has an estimated 9 trillion cubic feet of natural gas and Leviathan has 16 trillion cubic feet. Isramco and Ratio have not said whether they plan to develop the site for commercial production.

Ratio's share price rose 5.5% in morning trading today to NIS 0.346, giving a market cap of NIS 2.42 billion, and Isramco's share price rose 2.9% to NIS 0.421, giving a market cap of NIS 4.9 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on October 16, 2011

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

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