Oil Discovered in Israel’s Yam 3 Offshore Field, Could Generate $11 Billion

September 9, 2013 9:44 pm 5 comments

Oil barrels, with an international price of above $100 each, makes what's under water at the Yam 3 offshore field worth some $11 billion. Photo: WikiCommons.

Oil barrels, with an international price of above $100 each, means what's underwater at the Yam 3 offshore field could be worth some $11 billion, $3 billion for owner group Shemen. Photo: WikiCommons.

Shemen Oil and Gas Resources Ltd. (TASE: SOG) has discovered oil at Israel’s Yam 3 well, off the coast of Ashdod. The field is estimated to be worth up to $3 billion after development costs of $160 million, Israel’s Globes business daily reported on Sunday.

Shemen said signs of oil were found at the site, 19 kilometers from Ashdod, at a depth of 5,175 meters below sea level, and that the quality of the oil was high. The net thickness of the target strata is 68 meters, which, multiplied by the license area of 25 square kilometres, gives Israeli energy analysts an idea of how much oil awaits Shemen under the sea, Globes said.

A resources report by Netherland Sewell & Associates Ltd. estimated the field holds 128 million barrels of recoverable oil, with 110 million barrels of oil and 18 million barrels of oil equivalent of natural gas. With international oil prices above $100 per barrel, the reservoir could generate $11 billion, with between $2 billion and $3 billion value for the field’s developers, Globes said.

Clal Finance energy analyst Yaron Zar told Globes that the next data point investors are waiting to learn is what kind of bedrock is being found in the area. At the much larger Israeli natural gas fields of Tamar, Leviathan, and Karish, the rock is highly porous sandstone, but the strata rock at Yam 3 may be chalk, with a far lower porosity. The softer the rock, the better for drilling and extracting, Globes said.

The oil discovery was powerful news for Shemen’s share price, which jumped by 15% before closing the trading session in Tel Aviv with a 3% gain on the initial news. The proof of oil is also seen as benefiting Israel’s exploration sector, which has fallen from grace after several high-profile “copy cat” natural gas wells announced in the wake of Israel’s Leviathan mega deal proved to be duds.

Israel’s Myra and Sarah fields, both “dry holes,” were estimated to contain 6.5 trillion cubic feet of gas and cost $165 million to explore; the Ishai license, another dud, was estimated to have 2.4 TCF of gas and cost $103 million to explore; while the Shimshon license, yielded just 0.6 TCF of gas, a quarter of the estimated 2.4 TCF, and cost $80 million.

5 Comments

  • Of Asher he said, “More blessed than sons is Asher; May he be favored by his brothers, And may he dip his foot in oil.” Deuteronomy 33:24

    and now, nanodots!

    the fig tree has more than started to send forth new growth. God Bless Israel.

  • is it ashers’ feet which are bathed in oil? and for such a time as this? shalom Israel shalom

  • Elliot J. Stamler

    We Jews have all heard the old joke: if only Moses had turned right instead of left the promised land would have been in Arabia. Well, thousands of years later, looks like Moses did make the correct turn.

  • This isn’t thrilling, it is nauseating. Western Civilization’s limited accumulation of Wisdom has been centered in the Old Testament and prior to scientific archaeology that only began in the 19th century it is all the knowledge of past mistakes that we had. It is ironic to me that these finds are not that far from the exhausted mines of Solomon and the Egyptian Pharoahs. Like the oilfields of Texas, they will only be a temporary fix, and since Fukushima it is obvious that “peacefl” uses of atomic energy are turning out to be even more lethal than those that are meant to blow up cities and kill large numbers of people. Aside from sun, wind, and tides, your only real source of sustainable energy and if you aren’t running a generator connected to your bicycle to read this, you might as well drop dead and count your entire lifetime as having been a complete waste of time.

  • Wow, for crying out loud, Israel has got oil and gas coming out of their mouth, ears and eyes. It’s absolutely miraculous!!! I’m just astounded and I believe there is going to be much more they will find. To Jesus Christ be all the Glory!!!

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