According to a recently published resources report by NSAI, the oil and gas potential in “Oz” license is estimated at 2.5 trillion cubic feet of natural gas and about 255 million barrels of oil # Eyal Shuker, CEO of Israel Opportunity: The potential for oil and gas in the region is great and we are confident that the new government will not abandon the strategic development of the energy sector.
The oil and gas explorations partnership, Israel Opportunity, announced today that it will increase its holdings in “Oz” license by 31.5%, at the expense of Frendom and Placida’s (companies controlled by Teddy Sagi) holdings in the license. The Partnership will increase its share in the license from 10% to 41.5%. Israel Opportunity intends to work towards bringing an international strategic partner into the license. Alongside the transfer of rights, the Partnership will pay a sum of $400,000, following an agreement with Frendom signed with the entry to the license in 2012. Furthermore, in exchange for the acquired rights, Israel Opportunity will pay an additional $200,000 with the beginning of commercial production. Upon completion of the transaction, and after receiving the approval of the Petroleum Commissioner at the Ministry of Infrastructure, “Oz” License’s partners and holdings will be as follows: Israel Opportunity – 41.5%, Lapidoth-Heletz L.P. – 41.5%, Coleridge Gas & Oil Exploration Israel L.P.- 12% and Caspian Drilling Company Limited – 5%.
“Oz” License (former naval permit area “Benjamin”), covers an area the size of about 400,000 hectares, 50 km off the coast of Tel Aviv. According to a recent resources report by NSAI, the potential of “Oz” is estimated at 2.5 TCF (trillion cubic feet) of natural gas and approximately 255 million barrels of oil. For comparison, so far about 30 TCF of natural gas have been discovered along the Israeli coast, while the major reservoirs are Tamar, which contains about 9 TCF and Leviathan with about 19 TCF.
Israel Opportunity currently holds a broad portfolio of offshore and onshore licenses: 25% of new license application called “Hatrurim” covering an area of about 70 square kilometers near the Dead Sea; 16% of the exploration licenses “Pelagic” (after obtaining the approval for transfer of rights from the Petroleum Commissioner), including “Ishai” license that contains part of “Aphrodite” structure, located mostly in Block 12 of Cyprus; and 10% of two other offshore licenses, “Royee” and “Neta “, covering an area of about 800,000 hectares about 150 km west of Israel, with potential of 3.2TCF of natural gas.
Eyal Shuker, Israel Opportunity’s CEO: “The presence of large gas reserves in the maritime area of Israel is a proven fact. This is a strategic area of the State of Israel and we believe that despite the bumps on the road, the new government will not abandon the field and will do all it can to promote the development of gas fields and Israeli exports. For our part, increasing our share in “Oz” is a great opportunity and we aspire to bring an international strategic partner.”