Shimshon licensees Modiin Energy LP (TASE:MDIN.L) and Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) today announced that the reservoir has a best estimate of 0.55 trillion cubic feet (TCF) in gross conditional natural gas reserves, according to Netherland Sewell & Associates Ltd. (NSAI). The reservoir's low estimate is 0.27 TCF and its high estimate is 0.91 TCF.
Isramco owns 29% of the Shimshon license, Modiin Energy owns 10%, and ATP Oil & Gas Corporation (Bulletin Board: ATPAQ) owns 40%.
According to NSAI, the gross contingent reserves in the Shimshon Miocene Reservoir are classified as development pending, and are subject to approval of the project, approval of the reservoir's development plan, and reasonable expectations of natural gas sales contracts. Some of the reservoir could be classified as reserves. There is no timetable for drawing up a development plan for the reservoir at this time.
Isramco and Modiin Energy believe that the main market for a reservoir of this size is the Israeli domestic market. NSAI added that further seismic surveys are needed for the prospect's Miocene strata.
Modiin Energy CEO Ron Maor said, "The Shimshon reservoir, which has already been declared a discovery, is part of a new geological structure with gas reserves capacity in the Levantine Basin, and which is unrelated to the Tamar Sands. Subject to additional seismic work and the drilling of a verification well, it may be possible to estimate additional prospective resources in the license area. This is a proven reservoir, and Modiin Energy has an option to buy 15 of the adjacent Daniel East and Daniel West licenses. The Shimshon license is part of the diversified range of offshore licenses with potential gas and oil discoveries, including the Sarah, Yam Hadera, and Gabriella licenses."
Published by Globes [online], Israel business news - www.globes-online.com - on October 2, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012