Following the heavy falls in the share prices of the Myra and Sara license holders on Thursday, the companies have sought to dispel concerns about the wide difference between the various estimates for the gas field.
The 3D seismic survey by Netherland Sewell & Associates Ltd. (NSAI) found that the fields have a mean estimate of 6.5 trillion cubic feet of natural gas with a 54% probability of geologic success and 150.7 million barrels of oil with an 18% probability of geologic success. But there was a huge difference between the low estimate of 673 billion cubic feet of gas for Myra and Sarah and the 16.2 trillion cubic feet of the high estimate, while the best estimate is just 2.9 trillion cubic feet - 55% less than the gross mean reserve of 6.5 trillion cubic feet.
Because of this wide gap the license holders - Israel Land Development Company Energy Ltd. (TASE: IE), controlled by Ofer Nimrodi, Modiin Energy LP (TASE:MDIN.L) controlled by Nochi Dankner and Tzach Sultan, Premium (PIH) Holdings Ltd. (TASE: PIH), controlled by Yuli Ofer, fell 13.5% to NIS 1.23, and Shaldieli Ltd. (TASE: SHDL-M) - saw there shares lose ground.
This morning the license holders said that after the planned exploration drilling of the fields in the first quarter of 2012, the gap between the mean figure and the best estimate will be reduced. "The more data received from the exploration drilling in the license area, the gap between the extremes will be reduced significantly, and this will lead to a reduction in the gap between mean and best estimates."
The statement said, "It is acceptable to use the mean figure in the oil and gas exploration sector in Israel and the world and the statistic is calculated according to an acceptable geological model. The figure is calculated according to NSAI's considerations."
Of course, the gap between the figures could be reduced toward the lower figure or upper figure, and the license holders made no comment on this.
Share prices continued to fall during afternoon trading on the TASE. ILDC Energy fell 8.21% to NIS 1.29. Modiin fell 21.43% to NIS 0.011. Shaldieli rose 2.7% to NIS 1.37, and Premium fell 2.48% to NIS 1.22.
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