Thursday, June 30, 2011

Another natural gas field off Israel's coast - and possibly oil, too

From Globes:
The Myra and Sarah licensees today announced that the fields have potential reserves of 6.5 trillion cubic feet of natural gas, according to an analysis of the 3D survey by Netherland Sewell & Associates Ltd. (NSAI). The discovery is the third largest gas discovery offshore from Israel, after the 8.6 trillion cubic feet at Tamar and 16 trillion cubic feet at Leviathan. Myra and Sarah are located in deep water northwest of Netanya, and southeast of Leviathan, and are part of the Levant Basin, which the US Geological Survey estimates has 122 trillion cubic feet of natural gas.

At today's press conference, Israel Land Development Company Energy Ltd. (TASE: IE) CEO Ohad Marani said, "Today is a celebration. We are going to be the next big thing in Israel."

NSAI estimates the gross mean resources at Myra at 4.5 trillion cubic feet with a 58% probability of geological success and 1.9 trillion cubic feet at Sarah with a 43% probability of geological success. The average probability of geological success for both licenses is 54%, compared with 35% for Tamar.

NSAI also estimates that Myra and Sarah could have 150.7 million barrels of oil, with an 18% probability of geological success. Myra has gross mean resources of 113.4 million barrels of oil with an 18% probability of geological success, and Sarah has 37.3 million barrels of oil with a 23% probability of geological success.
Bloomberg adds an important point:
“Its always exciting to find natural resources,” said David Kaplan, a Tel Aviv-based energy analyst at Barclays Plc. “The government has shown concern about having an effective monopoly on natural gas and none of the partners in Sara and Myra are partners in Tamar.”