Modiin shares surged 22 percent, the most since February 27, to 0.099 shekel in 11 times the three-month average daily volume at 1:47 p.m. in Tel Aviv. The shares spiraled to a five-year low on July 10, and have declined 94 percent since the company said in September it found no significant signs of petroleum at the Myra 1 well. In October, Modiin abandoned the Sara 1/348 well after data showed the site is a dry hole.
The best estimates for unrisked, gross prospective oil resources at the license were increased by 57 percent to 208 million barrels, the company said in an e-mailed statement today. Estimates for natural gas were raised by 146 percent to 3.4 trillion cubic feet. Consultants Netherland, Sewell & Associates, Inc. provided a resources update report for the Mediterranean Sea block, approximately 50 kilometers northwest of Tel Aviv, according to a filing to the Tel-Aviv Stock Exchange.
“The share is up because the updated report shows higher potential for oil and gas than earlier estimates,” Noam Pincu, an analyst at Tel Aviv-based Psagot Investment House Ltd., said today by phone. “Even so, we’re still far away from the actual exploration drill and it will take time before we know if there is a discovery or not.”
Discoveries off Israel’s Mediterranean coast have given the country an opportunity to become an exporter of natural gas. The Tamar natural gas field, which started production in March this year, is estimated to hold 10 trillion cubic feet of natural gas. The larger Leviathan site is estimated hold 19 trillion cubic feet of natural gas.
Modiin has a 100 percent stake of the Yam Hadera license, according to data published by the Ministry of Energy and Water Resources.
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