Givot Olam oil reserves higher

The new estimate of proved developed producing reserves in section 8b of the Meged 5 well is more than double the previous estimate.

The proved developed producing (P1) oil reserves in section 8b of the Meged 5 well have more than doubled, according to the new resources report by Netherland Sewell & Associates Ltd. (NSAI), published by Givot Olam Oil Exploration LP (TASE:GIVO.L) today, after production levels in the first eight months of 2013 were higher than NSAI's forecasts in its previous report.

According to the updated resources report, the proved developed producing reserves (P1) in section 8b of the well were 890,700 barrels of oil as of September 1, compared with the previous estimate of 396,700 barrels at the end of 2012, an increase of 494,000 barrels of oil with a production probability of 90%, after 116,000 barrels of oil were produced in the first eight months of 2013.

The proved plus probable oil reserves in section 8b and section 1 of the well total 2.49 million barrels of oil, compared with 1.56 million barrels in the previous estimate.

The proved plus probable plus possible reserves in the two sections total 3.53 million barrels of oil, compared with 2.15 million barrels in the previous estimate, after 116,000 barrels of oil were produced in the first eight months of 2013.

Givot Olam has reported $40 million in oil sales to date from the continuous production of oil from section 8b at the Meged 5 well alone.

Published by Globes [online], Israel business news - www.globes-online.com - on October 7, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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