Eran Azran and Reuters Jan 17, 2016 12:40 PM
The potential find, about 100 kilometers off the Mediterranean coast, is in a license area knows as Daniel East and West, where Isramco Negev and Modiin Energy are the two primary investors.
An Israeli exploration group reported on Sunday that it has discovered another large natural gas field off Israel's Mediterranean coast. The group, led by Isramco Negev and Modiin Energy, said that a resource report showed there could be an estimated total of 8.9 trillion cubic feet of natural gas at the Daniel East and West fields.
For purposes of comparison, the offshore Tamar site, which is in production, contains about 9.9 trillion cubic feet of gas, while the huge Leviathan site off Israel’s coast, which is not yet producing gas, contains about 22.9 trillion cubic feet. The Daniel sites, it should be noted, consist of 10 separate structures, each of which would require expensive separate verification drilling, unlike Tamar and Leviathan, each of which are one structure.
The news about the Daniel find came as a surprise to the capital markets. As of early afternoon, shares in Modiin Energy were up a whopping 465%, while Isramco Negev shares were up 2.35%.
Sources in the energy sector pointed to the potential find as evidence that could refute public figures who expressed skepticism that additional gas would be found off the coast in Israel’s economic waters.
The Daniel East and Daniel West exploration sites are in deep water roughly 100 kilometers (60 miles) off the coast and near the border with the economic waters of the Gaza Strip. Isramco, which also has a stake in Tamar, has a 75% interest in Daniel. Modiin Energy has a 15% stake (with an option for an additional 10% to 15%). ATP Oil and Gas and another firm, AGT, have about 5% stakes each.
ATP, a Houston, Texas-based firm with operations in the Gulf of Mexico, ran into difficulties in 2013 and filed Chapter 11 bankruptcy proceedings. It is currently in the process of being dissolved.
Confirmation of the existence of the gas will require drilling at a cost of tens of millions of dollars. Tzahi Sultan, one of the controlling shareholders in Modiin Energy, said the Daniel site presents the greatest potential gas find since the Leviathan discovery and could substantially change the Israeli energy market.
“If the potential is realized, the find could greatly spur competition in the Israeli gas market,” he added.
Eran Azran, Haaretz Contributor
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