A source close to the subject told "Globes" that the report, to be published in the next 48 hours, is positive.
Market sources believe that the Myra and Sarah licensees will announce the report on the licenses' natural gas reserves within the next two days. The sources believe that the report will say that the reserves will have 6 trillion cubic feet of gas, confirming the original report by Chapman Petroleum Engineering Ltd.
For the sake of comparison, Tamar has an estimated 8.6 trillion cubic feet and Leviathan has 16 trillion cubic feet.
A source close to the issue told "Globes", "The report is expected to be positive." Earlier this month, licensee Israel Land Development Company Energy Ltd. (TASE: IE) controlling shareholder Ofer Nimrodi boasted about the pending report, saying, "You don’t hire a mohel (ritual circumciser) for $160 million, if you're not sure that you have a son." He also mentioned that ILDC Energy has contracted with a drilling operator for the licenses.
According to the Petroleum Supervisor, ILDC Energy owns 48.2% of the Myra and Sarah licenses, Modiin Energy LP (TASE:MDIN.L), controlled by Nochi Dankner's IDB Holding Corp. Ltd. (TASE:IDBH) and Tzahi Sultan, owns 24.38%, Canada's GeoGlobal Resources Inc. (AMEX: GGR) owns 5%, Israel Petroleum Company Inc. (IPC) owns 13.6%, and Blue Water Oil & Gas Exploration Ltd., owned by Prentis Tomlinson owns 8.78%.
IPC is due to merge with stock market shell Shaldieli Ltd. (TASE: SHDL-M) and Premium (PIH) Holdings Ltd. (TASE: PIH), controlled by Yuli Ofer and Nimrod Rinot, is waiting for the Petroleum Supervisor's approval to acquire a stake from IPC
In December 2010, Chapman estimated that Myra and Sarah's natural gas reserves at 6 trillion cubic feet, but later reduced the estimate 4.77 trillion cubic feet of gas with a 43% of geological chance of success.
ILDC Energy's share price rose 9.3% by midday to NIS 1.73, giving a market cap of NIS 1.37 billion, and Modiin Energy's share price rose 5.4% to NIS 0.06, giving a market cap of NIS 1 billion. Premium's share price rose 3.7% to NIS 1.29, giving a market cap of NIS 70 million, and Shaldieli's share price rose 18.3% to NIS 1.68, giving a market cap of NIS 22 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 29, 2011
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