IO Monthly Update - June 2017
Israel Opportunity's Latest Announcements
- Israel Opportunity Purchases 10 Oil Fields in North Dakota, USA
On June 27th
, 2017, the partnership signed a Farmout Agreement for the purchase of 10 oil fields spread across an area of about 6,400 acres, in North Dakota, USA. The Partnership intends to perform two development drillings this year and two more during 2018. According to the agreement, the sellers, which prior to the signing of the transaction holds about 94% of the rights to the oil fields, will transfer 75% of its rights to Israel Opportunity and its partners (the "Acquired rights"), so that it remains with only 25% (from 94%). The Partnership will hold 67% of the Acquired Rights, Cyprus Opportunity will hold 3%, and Radian Partners will hold 5%. In return for the purchase of rights, the partners have paid about $2.4 million and an additional $10 million in respect of the expenses of the sellers and the purchasers of the rights in the fields, subject to the terms of the agreement.
- Energean submits "Karish" and "Tanin" fields development plan
On June 20th, 2017, the Greek energy production company Energean Oil & Gas submitted the Field Development Plan (FDP) for the "Karish" and "Tanin" offshore natural gas fields to the Israeli Petroleum Commissioner at the Ministry of National Infrastructures, Energy and Water Resources. Energean Israel holds 100% of Karish and Tanin, which combined have an estimated 2.7 TCF of natural gas and 41 million barrels of oil equivalent of light hydrocarbon liquids. The Karish development plan envisages drilling three wells, using a new Floating Production Storage and Offloading (FPSO) unit that will be installed approximately 90 km offshore, with 400 mmscf/day capacity.
- Ministry of Energy postpones deadline in the Offshore Bid Round
On June 22nd, 2017, The Petroleum Commissioner in the Ministry of Energy announced the extension of the 1st Israeli Offshore bid round for opening the sea to new natural gas and oil exploration until November 15th, 2017. The Commissioner explained that the Ministry of Energy continues its efforts to encourage the arrival of additional energy companies to invest in Israel along with other tenders issued by various countries in the Mediterranean Sea.
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