Energtek Inc. announced that it has completed an evaluation of gas reservoirs in the licensed block in Southern Israel. The evaluation was performed following the successful production test, as reported in December 2010, of the NirAm Gas1 well.

Based on the seismic and geophysics data as well as a detailed analysis of the production test’s results, the geological team estimated that the recoverable gas resources (contingent resources) of the reservoir at which the NirAm Gas1 was drilled amount to 1.7 BCF (Billion Cubic Feet). Furthermore, the geological team identified three similar natural gas reservoirs in the Nir-Am block. According to the company, prospective gas resources from the identified reservoirs may total as much as 5 BCF.

Should these amounts be achievable, at current market prices they would represent tens of millions of dollars. Leveraging Energtek’s technologies and know-how would enable the provision of the extracted gas to industrial consumers, significantly increasing the sales value of the extractable gas.

Energtek told investors it has already initiated engineering and regulatory activities for a local energy mobile supply project based on the Natural Gas reserves from the Nir-Am Gas1 well. The company has also reported that significant quantities of oil may be present at the Nir-Am block, which is officially licensed to Energtek for oil and gas exploration and exploitation.

“We are very pleased with the results of the evaluation,” stated Former Minister of Infrastructure and Energtek Chairman Eliezer Sandberg. “In the present economic and geopolitical conditions, it is of utmost importance to promote the utilization of every indigenous source of natural gas and oil in Israel, especially those that are close to the energy consumers. The importance of these sources in the forthcoming years cannot be overemphasized.”

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