IO Monthly Update - April 2016
Israel Opportunity's Latest Announcements
- Resources report for Hatrurim License estimates 7-11 M barrels
A contingent resources report was published by the Partnership on May 1st, 2016, for the Halamish structure, within "Hatrurim" license. The report, made by Dunmore Consulting, estimates about 7 million barrels of oil (Best Estimate) and up to 11 million barrels (High Estimate). The Hatrurim license is spread over 94 square kilometers in the Dead Sea area. In 1995, Delek Group carried out an initial drilling in the license and found oil. This was the last drilling by Delek Group and Avner Oil and Gas on land, before their offshore gas discoveries. It was decided at the time not to produce oil from the reservoir, inter alia, because of the low oil price then prevailing.
- Genie Energy fails to find commercial hydrocarbons at Afek test well
On March 15th, 2016, the Petroleum Commissioner has extended the validity of "Oz" License until December 19th, 2016. The extension is subject to a change in the license's work program, inter alia the submission of an environmental survey according to the guidelines of the Ministry of National Infrastructures, Energy and Water Resources by August 20th, 2016, and a signed contract with a drilling contractor by October 15th, 2016
- Delek Drilling and Avner in merger talks
Delek Drilling and Avner Oil and Gas, gas exploration partnerships that are units of Delek Group Ltd. notified the Tel Aviv Stock exchange on April 15th, 2016, that the general partners in the two companies had held discussions on a possible merger. The companies said that a merger would enable the companies to take advantage of their overlapping assets and activities, to benefit from economies of scale, including streamlining and simplification of financing processes in connection with the various projects in which they are engaged, first and foremost the development plan for the Tamar and Leviathan gas reservoirs, as well as more efficient management structures and savings of management costs. Delek Drilling and Avner Oil and Gas each hold 15.625% of Tamar and 22.67% of Leviathan.
- Zohr gas field to produce 1 bln cubic feet per day by end-2017
According to Globes Magazine and Reuters, Italian company Eni successfully completed its third drilling, and said that the amount of gas in it was 20% higher than expected. The Eni CEO asserted that the gas from the reservoir could begin flowing at the end of next year. Egypt has agreed to begin production of 1 billion cubic feet per day of gas at the Zohr gas field, by the end of 2017. Eni has said it will invest about $4 billion in the first phase of the project which includes drilling four wells. The field is expected to produce 2.5-3 billion cubic feet of gas per day when it reaches peak production in 2019.
The materials and information included in this newsletter are provided as a service to you by Israel Opportunity Oil & Gas Exploration Ltd. ("the Company") and the Company or any of its subsidiaries are not responsible for the accuracy and completeness of information provided herein. The information provided herein is not advice of any kind, and should not be treated as such.
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