The partners in the offshore Shemen license - Israel Financial Levers Ltd. (TASE:LVR) and Chaim Lebovitz's ACC International Holdings Inc. today announced that best estimate of oil in the structure is 120.4 million barrels, with a 50% geological chance of success.
The two companies set up a joint venture, Shemen Oil and Gas Exploration LP for the project. The Yam discovery is in Jurassic rock beneath shallow water 16 kilometers west of Ashdod.
The high estimate is 287.2 million barrels of contingent resources of oil with a 10% geological chance of success, and the low estimate is 33.5 million barrels of oil with a 90% geological chance of success. The gross mean estimate of the reservoir is 142 million barrels of oil. The estimate was made by Netherland Sewell & Associates Ltd. (NSAI).
At the request of ACC, NSAI also provided a net contingent cash flow of the reservoir: $3.1 billion accruing to ACC for the best estimate, and discounted at 10%. The estimate for gross mean reservoir is $4 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on April 21, 2011
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