Isramco, Modiin report huge Daniel license gas potential

gas rig

The resources report estimates total potential gas reserves of 8.9 TCF, comparable with Tamar.

Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) and Modiin Energy LP (TASE:MDIN.L) have released a resources report today on the Daniel license. According to report by Netherland, Sewell & Associates, Inc., the best estimate for the Og prospect in the Daniel East license is that it holds a prospective reservoir of 1.1 TCF of gas, and the Daniel West license has several blocks with, at a best estimate, an aggregate prospective reservoir of 7.8 TCF of gas. The estimate for the Og prospect is with a 38-43% probability of finding gas, while in the Daniel West license the probability ranges from 24% to 57% depending on the prospect. The figures mean that the licenses could hold gas reserves comparable with those of the Tamar field, currently Israel's main source of gas.

On the Tel Aviv Stock Exchange, after trading in them wassuspended pending the announcement, participation units in Isramco are up 8.46%, while units in Modiin have soared 34.3%.

Ron Maor, CEO of the general partner in Modiin Energy, said, "We are excited at the potential that has been revealed for finding gas in the Daniel East and Daniel West licenses. This is potential of a significant size which, if realized, could represent competition for the currently existing reserves, and improve the country's energy security. Together with our partners we will carry out drillings to test the potential prospects as soon as possible. We hope that the State of Israel will encourage further activity in the potential gas reserves in the Daniel East and Daniel West fields."

Tzahi Sultan, who is part of the controlling interest in Modiin Energy, added, "These licenses have the greatest potential since Leviathan. Gas reserves of this order could significantly change Israel's energy industry. If the potential is realized, the discovery could help competition in the Israeli gas industry a great deal, and could completely change the picture."

Published by Globes [online], Israel business news - - on January 17, 2016

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

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