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 subsidiariesAvner Oil and Gas LP(TASE:AVNR.L) andDelek 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 reservoir 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.
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.