Israel Opportunity Energy Resources LP (TASE: ISOP.L) is in talks to acquire 10% of the rights in the Gabriella offshore license from Modiin Energy LP (TASE:MDIN.L).
The 392-square kilometer Gabriella license is located 10 kilometers offshore along a strip paralleling the coast between Ashdod and Netanya, and has an average water depth of 150 meters The licensees are due to drill a well offshore from Herzliya by mid-year. Modiin Energy owns 70% of the license, and Canadian companies Adira Energy Corporation (TSXV: ADL; Bulletin Board: ADENF; XETRA: AORLB8) and Brownstone Energy Inc. (TSX: BWN; Bulletin Board: BWSOF) subsidiary Brownbarb (Israel) Ltd. each own 15%.
Netherland Sewell & Associates Ltd. (NSAI) gives the reservoir a best estimate of 110 million barrels of oil. The high estimate is 264 million barrels and the low estimate is 30 million barrels. It estimates the contingent resources at 17.4 million barrels of oil with a geologic probability of 24% and 0.64 trillion cubic feet of natural gas with a geologic probability of 15%.
"Israel Opportunity's cash reserves enable us to consider investment oil and gas exploration opportunities, as part of our strategy to build a diversified portfolio to diversify risk," said CEO Eyal Shuker.
Published by Globes [online], Israel business news - www.globes-online.com - on January 23, 2013
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