June 30 (Bloomberg) -- Holders of the Sara and Myra exploration licenses off Israel’s Mediterranean coast said that a seismic survey showed the prospects may hold 6.5 trillion cubic feet of natural gas.
“This is an excellent report for us and for the energy sector,” Ohad Marani, the chief executive officer of Israel Land Development Co. Energy Ltd., said at a conference in Tel Aviv.
The results for Sara and Myra follow other gas finds off Israel since 2009, including the Tamar and Leviathan discoveries that together hold an estimated 25 trillion cubic feet. The discoveries are sufficient to meet Israel’s domestic needs eventually and enable it to export gas, industry executives and government officials have said.
“The government has shown concern about having an effective monopoly on natural gas and none of the partners in Sara and Myra are partners in Tamar,” David Kaplan, a Tel Aviv-based energy analyst at Barclays Plc.
Tamar partnership companies fell in Tel Aviv trading. Isramco Negev 2 LP dropped 0.2 percent to 0.419 shekels at the 4:30 p.m. close in Tel Aviv. Avner Oil Exploration LLP declined 4 percent to 1.99 shekels. Delek Drilling LP lost 3.4 percent to 11.09 shekels.
Tamar is already being developed and may produce gas by 2013, while Sara and Myra are still targeted prospects rather than discoveries, Kaplan said.
“In the best case scenario, where everything goes perfectly, the first product may be two to four years from now,” Kaplan said.
Israel Land Energy fell 24 percent to 1.40 shekels today after rising 13 percent yesterday on press reports of the estimates. Modiin Energy Ltd., another partner in the licenses, retreated 19 percent to 0.05 shekel after gaining 8.8 percent in the previous session.
“Investors were today taking profit as shares rallied more than 100 percent June ahead of the report,” Eran Yunger, analyst at Migdal Capital Markets Ltd., said by telephone today.
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