The Shimshon license has an estimated 43 billion cubic meters of gas with a 15% geologic chance of success.
Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) and ATP Oil & Gas Corporation (Nasdaq: ATPG) will begin drilling the Shimshon 1 exploratory well in the second half of April. The Shimshon license is in shallow water 50 kilometers from the Yam Tethys reservoir. It has an estimated 43 billion cubic meters of gas with a 15% geologic chance of success.
The Shimshon partners have budgeted $63.8 million for the well, and $33.7 million for production tests if there is a natural gas discovery.
ATP owns 40% of Shimon and Isramco and its affiliates own 60%. Isramco's share price rose 0.4% in morning trading to NIS 0.504, giving a market cap of $6 billion. ATP's share price rose 3.2% on Nasdaq on Friday to $8.47, giving a market cap of $437 million.
Published by Globes [online], Israel business news - www.globes-online.com - on March 11, 2012
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