In its notice to the Tel Aviv Stock Exchange (TASE) yesterday about its reverse merger with Myra and Sara offshore license partner Israel Petroleum Company (IPC), Shaldieli Ltd. (TASE: SHDL-M) included a revised report by Chapman Petroleum Engineering Ltd., which says that the licenses' gas fields are smaller than previously estimated, but that they have a greater probability of commercial production. IPC owns 13.6% of the two licenses, located offshore from Netanya, near the Tamar discovery.
On the basis of 3D seismic surveys of the Myra and Sara licenses, Chapman estimates that they contain 4.77 trillion cubic feet of natural gas in the best-case evaluation, based on Petroleum Resources Management System (PRMS). The high-end evaluation is 6.24 trillion cubic feet of gas, and the low-end evaluation is 3.29 trillion cubic feet. The Tamar gas field has 8.4 trillion cubic feet of natural gas.
The 4.77 trillion cubic-foot evaluation is less than the 5.71 trillion cubic foot estimate that Chapman estimated in its previous evaluation, in September. At the same time, Chapman increased the probability of geological success of the best-case evaluation at 43%, and the probability of commercial production to 40% from 30%.
The lower best-case evaluation gives the Myra and Sara licenses a value of $7 billion, less than the $7.68 billion value estimated by Chapman in September.
Myra and Sara license partners Modiin Energy LP (TASE:MDIN.L) and Israel Land Development Company Energy Ltd. (TASE: IE) said in response today that the evaluation of the licenses was based on a fast-track analysis of the 3D seismic survey by WesternGeco Ltd. The companies added that the full analysis was not yet complete, and that it will be published in a few months.
IPC is a subsidiary of Canada's Bontan Inc. (Bulletin Board: BNTNF).
Published by Globes [online], Israel business news - www.globes-online.com - on December 12, 2010
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