Isramco CEO: We are still far from declaring discovery

Tamar

Eran Saar cooled enthusiam for the Daniel license saying, "This is not a discovery; it is only a report of potential resources."

Commenting on the dramatic announcement by Isramco Negev 2 LP (TASE: ISRA.L) and Modi'in of the resources report for the Daniel license indicating a potential natural gas reserve of 8.9 TCF in two blocs in the drilling license, Isramco CEO Eran Saar sought to cool excess enthusiasm and put matters in their proper proportion. "The findings are encouraging, and bring new hope to the oil and gas exploration sector in Israel, but we should not go overboard," Saar said. "In my humble opinion, there is no drama here for the gas industry in Israel. This is not a discovery; it is only a report of potential resources, and there is no assurance at this stage that anything will come of it. I also emphasize that it involves 10 different blocs in the area of two Daniel licenses, each of which requires separate exploration drilling with different risks and chances. The road to a discovery, if any occurs, is still a long one."

Saar added, "In view of the difficult macroeconomic state of the sector and the difficult period for Israeli industry, we expect the team recently formed to implement the gas plan to carry out the provisions of the plan for encouraging the exploration of gas fields, and to make important decisions that will pave the way for continued exploration in the Mediterranean Sea and attracting potential investors to Israel. Before continuing its exploration of the Daniel license, Isramco will bring partners into the licenses."

Published by Globes [online], Israel business news - www.globes-online.com - on January 17, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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