Israel’s “Oz” Offshore 21% License Participant Teddy Sagi Benefits As Substantial Hydrocarbons Validated

The offshore licensees include Israel Opportunity, Lapidoth Heletz, Coleridge Oil and Gas, and Teddy Sagi.

Teddy Sagi

The Oz prospect licensees today published a prospective resources report for the license, which states that it potentially contains large quantities of natural gas. The prospective resources report by Netherland Sewell & Associates Ltd. (NSAI), which wrote the reports for the Tamar and Leviathan fields, among others, estimates that Oz has 2.5 trillion cubic feet (TCF) of gas and 255 million barrels of oil.

Tamar,    The Natural Gas Production Platform Off The Israeli Coast,    Is To Begin It's Natural Gas Production

The report states that best estimate (P2) for the prospect’s gas targets is 2.5 TCF with a geologic probability of success of 23-27%. The low estimate (P1) is 1 TCF and the high estimate (P3) is 6.2 TCF.

The report states that the best estimate of the total prospective resources is 255 million barrels of oil with a geologic probability of success of 16-18%. The low estimate is 93 million barrels of oil, and the high estimate is 607 million barrels.

For the sake of comparison, 30 TCF of natural gas have been discovered offshore to date. The largest fields are Tamar, with 9 TCF of gas, and Leviathan, with 19 TCF.

The Oz license (formerly the Benjamin license) covers 400 square kilometers, 50 kilometers west of Tel Aviv. The licensees include Lapidoth Heletz LP (TASE: LPHL) (41.5%),  Israel Opportunity Energy Resources LP (TASE: ISOP.L) (10%), Coleridge Oil and Gas Exploration Israel LP (12%), and Teddy Sagi’s Frendum Investment Ltd. (21.5%).

Israel Opportunity chairman Rony Halman said that the report’s data were better than the estimates on the basis of which the company decided to acquire a stake in the license. “The Levant Basin is rich in gas, and we are investing our best efforts in developing and promoting exploration activity in Israel and Cyprus. We hope to find more gas fields in the Levant basin, and to help foster the energy industry in our region. It should be remembered, however, that this is a high-risk industry, which requires professionalism and stamina.”

Published by Globes [online], Israel business news – www.globes-online.com 

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