"Shimshon" licensees Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) and Modiin Energy LP (TASE:MDIN.L) today notified the TASE that there is no change in the prospective reserves in the license, ahead of the drilling of an exploratory well.
The Shimshon license is located in shallow water 50 kilometers east of the Yam Tethys reserves offshore from Ashkelon. Shimshon has a best estimate of 2.3 trillion cubic feet (TCF) of natural gas with a 15% geologic probability of success.
The estimated cost of the exploratory well is $64 million.
For the sake of comparison, Tamar has an estimated 9 TCF of gas reserves with a geologic probability of success of 35%, and Leviathan has 17 TCF.
On Sunday, Isramco and Modiin announced that Shimshon's operator, ATP Oil & Gas Corporation (Nasdaq: ATPG) had notified them that the Ensco 5006 rig had reached the drill site, and was preparing for drilling, which would begin within a few days.
Isramco owns 39% of Shimshon. Two weeks ago, it decided to sell 10% of the license rights to Modiin Energy, controlled by Nochi Dankner's IDB Holding Corp. Ltd. (TASE:IDBH) and Tzahi Sultan for $100,000 for expenses to date, subsequent proportionate expenses, and 2.5% of the cost of the exploratory well.
Shimshon's other shareholders are ATP, with a 40% stake, and Isramco affiliates Naphtha Explorations Ltd. (TASE:NFEX.L) with 10% and INOC-Dead Sea LP (TASE: HLDS.L) with 11%.
Isramco's share price rose 1.1% in early trading to NIS 0.53, giving a market cap of NIS 6.7 billion and Modiin Energy's share price rose 0.3% to NIS 0.36, giving a market cap of NIS 837 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 24, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012