Licensees confirm 6.5 TCF gas at Myra and Sarah

There is also an 18% chance that the two fields, northwest of Netanya, contain more than 150 million barrels of oil.

30 June 11 10:30, Koby Yeshayahou and Hillel Koren

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."

According to the Petroleum Supervisor, ILDC Energy (through Emanuelle Energy Ltd.) owns 48.2% of the Myra and Sarah licenses, Modiin Energy LP (TASE:MDIN.L), controlled by Nochi Dankner's IDB Holding Corp. Ltd. (TASE:IDBH) and Tzahi Sultan, owns 24.38%, Canada's GeoGlobal Resources Inc. (AMEX: GGR) owns 5% through its Indian unit, Israel Petroleum Company Inc. (IPC) owns 13.6%, and Blue Water Oil and Gas Exploration Ltd., owned by Prentis Tomlinson owns 8.78%.

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.

Marani said, "The depths of the gas target strata are the Tamar sands, and the oil target strata begin at a depth of 4,000 meters."

IPC is due to merge with stock market shell Shaldieli Ltd. (TASE: SHDL-M) and Premium (PIH) Holdings Ltd. (TASE: PIH), controlled by Yuli Ofer and Nimrod Rinot, is waiting for the Petroleum Supervisor's approval to acquire a stake from IPC

ILDC Energy's share price rose 10% to NIS 2.03, giving a market cap of NIS 1.55 billion, and Modiin Energy's share price rose 1.6% to NIS 0.063, giving a market cap of NIS 975 million.

Published by Globes [online], Israel business news - www.globes-online.com - on June 30, 2011

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