The Israeli partners in the Leviathan gas field Delek Group Ltd. (TASE: DLEKG) units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L), and Ratio Oil Exploration (1992) LP (TASE:RATI.L) today updated the size of the field's proven reserves from 18 TCF (trillion cubic feet) to 18.9 TCF. The field's gross contingent resources estimate was raised from 21 TCF to 24 TCF.
The companies also revised the amount of condensate by 54% to 34 million barrels (best estimate). Condensate is the liquid hydrocarbons obtained during the production of gas, and used as a raw material by the petrochemicals industry for the refining of fuels. The price of condensate is several times higher than the price of natural gas, and is close to the global price of oil.
Ratio shareholder Yigal Landau told "Globes", "The greatest significance lies in the increase in the gas reserves from 16 TCF in the original Tzemach report to almost 19 TCF today, compensating for the disappointments from the recent offshore wells. We are not waiting for the committee's report to be approved by the government, in order to close gas export contracts to finance the huge investments needed to develop the reservoir."
Delek Drilling CEO Yossi Abu said, "The upside in Leviathan has grown significantly, and today's addition of condensates is worth a lot of money, which the market does not always pay attention to."
Minister Energy and Water Resources Silvan Shalom said, "I congratulate the companies on the good news and on the additional discoveries in the Leviathan field, which is an important anchor for the Israeli gas industry. Increasing the supply of gas in the fields will enable the supply of more gas to the domestic market on one hand, while allowing exports and raising the government's revenues for investment in education, welfare, health, investment in the Negev and Galilee, and other investments for the good of Israel's people, on the other."
Published by Globes [online], Israel business news - www.globes-online.com - on May 1, 2013
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