Oil reserves at the Shahar prospect in the Arava range from 9 million to 138 million barrels of oil, potentially worth $2.5 billion.
Ginko Oil Exploration Ltd. has not yet found substantial quantities of oil at its onshore licenses, but it continues to look. The company, which is now planning to drill a well in the northern Arava, today announced that the mid-range estimate of oil reserves at the Shahar prospect on the edge of the Dead Sea Valley is 41 million barrels, a a low-end estimate of nine million barrels, and a high-end estimate of 138 million barrels, with a geological chance of success of 12%. UK consultancy firm Simco Petroleum (Management) Ltd. made the evaluation.
Assuming a price of $60 per barrel, the Shahar prospect is worth between $500 million and $8 billion, with a mid-range of $2.5 billion.
The Shahar prospect covers 389 square kilometers in the Arava, south of the Dead Sea. Ginko plans to drill an exploratory well to the oil-bearing target strata during the second quarter of 2011.
Published by Globes [online], Israel business news - www.globes-online.com - on November 30, 2010
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