Bethel Finance: Block 12 estimate lowered to 5.1 trillion cubic feet

www.bethelfinance.com
A new estimate for the natural gas reserves at Cyprus's Block 12 concession, owned by Noble Energy Inc. (NYSE: NBL) and Yitzhak Tshuva-controlled Delek Group Ltd. (TASE: DLEKG), is considerably less than the previous estimate. Netherland Sewell & Associates Ltd. (NSAI) gives a best estimate of 5.1 trillion cubic feet (TCF) of gas, with a probability of 50%. Block 12's two reservoirs have a best estimate of 1.7 TCF and 3.4 TCF of gas, respectively, of proven reserves, based on the exploratory A-1 Aphrodite well.

The new estimate for Block 12 makes it the third largest in the Levant Basin, after the 17 TCF discovery at Leviathan, and the 9 TCF discovery at Tamar, in both of which Noble Energy and Delek are partners. Noble Energy owns 70% of Block 12, and Delek Group energy exploration subsidiaries Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) each own 15%.

In late 2011, Noble Energy announced that the Aphrodite structure had an estimated 7 TCF of natural gas, with a 60% probability, less than the high end of earlier estimates of 3-9 TCF. The wide range of estimates for the size of the reserhttp://www.blogger.com/img/blank.gifvoir is due to the complex geological structure.

Noble Energy was the only energy exploration company to apply for the Block 12 concession in October 2008. The three-year license can be extended twice. The concession's original area was 4,000 square kilometers, 10 times the size of the average Israeli exploration license, but Noble Energy forewent 25% of the concession when it extended its license. Cyprus plans to export nearly all the gas from Block 12, as its own consumption is small.

"In February, Cyprus published tenders from more 12 concessions in its exclusive economic zone south of the island. The zone borders Israel's own exclusive economic zone, and Block 12 is close to Leviathan" pointed Mr. Peres Sailam from Bethel Finance Ltd.

Delek Group's share price fell 1.4% in early trading today to NIS 662, giving a market cap of NIS 7.6 billion, Avner's share price fell 1.3% to NIS 2.42, giving a market cap of NIS 8.2 billion, and Delek Drilling's share price fell 1.5% to NIS 13.37, giving a market cap of NIS 7.4 billion.