Billionaire Beny Steinmetz is likely to face another disappointment: there is believed to be no overspill of natural gas in the offshore exploration licenses he bought near Leviathan. The Leviathan 1 well is drilling in the area of the Rachel license, and according to previous assessments, up to 10% of the huge gas reservoir spills over into the area of the Lela licenses neighboring on the west, which is one of the licenses owned by Pelagic Explorations Company.
On the basis of these assessments, Pelagic's licenses became hot property in the gas exploration industry. In the past few months, most of Israel's oil and gas entrepreneurs sought to partner with Pelagic's owner Prentiss Tomlinson, who bought the rights to licenses from Pelagic this summer.
As "Globes" reported earlier this month, Steinmetz won the race, and reached a deal with Tomlinson to buy 50% of the rights to the licenses. Israel Opportunity Energy Resources LP (TASE: ISOP.L) is also a partner in the Pelagic licenses.
Steinmetz was a partner in the Tamar license, but sold his stake in 2008, shortly before the gas discovery was made there. He re-entered the field after already suffering one disappointment.
Steinmetz-owned BSG Investments Ltd. said in response that while the first, natural gas bearing strata of Leviathan did not spill over into the Pelagic licenses, this may not be the case for the deeper oil-bearing strata.
Published by Globes [online], Israel business news - www.globes-online.com - on December 30, 2010
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