The Israeli partners in the Leviathan gas reservoir, Delek Drilling, Avner Oil and Gas LP (TASE: AVNR.L) and Ratio Oil Exploration (1992) LP (TASE:RATI.L), say that they do not accept the determination by the Ministry of National Infrastructures, Energy and Water Resources that the amount of gas in the reservoir is 20% less than they estimate. The partnerships stated in a notice to the Tel Aviv Stock Exchange today, "There has been no change is the resources estimate of natural gas and condensates in the Leviathan reservoir. The best estimate is still 21.9 trillion cubic feet."
The partnerships rely on a resources report from NSAI, and point out that the report was prepared in accordance with the rules of the Petroleum Resources Management System of the Society of Petroleum Engineers, and securities regulations.
The partnerships may have been seeking to reassure investors in their participation units before the opening of trading on the Tel Aviv Stock Exchange today. The statement by the Ministry of National Infrastructures, Energy and Water Resources was released on Thursday after the market closed. The partnerships stress that "NSAI is an independent firm that specializes in resources estimates around the world and is the leader in the list of providers of resources estimates to energy companies traded in the US for the purposes of informing the public."
On Thursday, the Ministry of National Infrastructures, Energy and Water Resources released a statement that confirmed a report by "Globes" two months ago that the amount of gas in the Leviathan reservoir was some 20% lower than the partnerships' estimate. The ministry's estimate is based on findings by international consulting firm RPS, according to which the Leviathan reservoir contains 17.6 TCF of natural gas, and not 21.9 TCF as the partnerships claim.
Prices of participation units in the gas partnerships are little changed on the Tel Aviv Stock Exchange this morning. Avner is currently up 0.37%, Delek Drilling is down 0.08%, and Ratio is up 0.34%.
Published by Globes [online], Israel business news - www.globes-online.com - on June 5, 2016
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