New Survey Increases Gas Estimate for Israel's Leviathan Reserve

By Sara Toth Stub

Special to DOW JONES NEWSWIRES

JERUSALEM--A new seismic survey indicates an even larger amount of natural gas in Israel's offshore Leviathan reserve, partners in the project said Wednesday.

According to the current best estimate, the field contains 18.9 trillion cubic feet of gas, up from 18 trillion cubic feet, based on a survey released in March, said Ratio Oil Exploration Ltd. Partnership (RATI.L.TV), which holds 15% of the drilling license. The amount of natural gas assumed to be in the field has been estimated upward several times since its discovery in 2010, when it was initially thought to contain 16 trillion cubic feet.

The field is scheduled to start production later this decade, and lead to Israel becoming an exporter of energy, but the government hasn't yet decided how much gas it will allow to be exported.

The partners in Leviathan, which also include Houston-based Noble Energy Inc. (NBL) and Delek Group Ltd. (DLEKG.TV) subsidiaries Delek Drilling Ltd. Partnership and Avner Oil Exploration Ltd. Partnership (AVNRL.TV), recently signed an agreement to partner up with and sell 30% of the rights to the field to Australia's Woodside Petroleum Ltd., which specializes in deep water drilling.

Noble Energy and Delek Group also have stakes in another large offshore gas field, Tamar, which began production in March.

At 1212 GMT, shares of Ratio were up 0.031 shekels, or 9.90%, at ILS0.344 ($0.096), and shares of Delek Group were up ILS28.20, or 2.99%, at ILS971.20, in a higher Tel Aviv market.

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