NEW YORK, October 18, 2010 /PRNewswire-FirstCall/ -- Energtek Inc., a leader in hi-tech natural gas solutions and Adsorbed Natural Gas (ANG) technology, today announced that its wholly-owned subsidiary, Energtek Products Ltd., has received a geological survey on the Nir-am-Sa'ad block in southern Israel, identifying the potential for exploitable oil and natural gas reserves. Energtek Products has the exclusive license to explore and exploit the resources in the said block.
According to the geological survey and past geological reports, there is an estimate of 26 Million Barrels of Oil (MMBO) recoverable at depths of 1,800 - 2,000 meters. At the current oil market price (above $80 per barrel), the estimated oil quantities could value over $2 billion.
The preliminary geological survey consists of modeling and probabilistic analysis of seismic indicators and historical data. Current estimates will need to be confirmed by additional studies.,Additional seismic analysis, modeling and further verifications are required to compile more accurate data on the fields and to provide more accurate reports on actual recoverable reserves.
The preliminary survey also reports an additional estimate of 12 Million Barrels of recoverable oil at depths of 3,200 - 3,900 meters. At current prices, this quantity could value over $900 million. Similarly, it indicates the potential presence of small quantities of natural gas at shallow depths (300 -800 meters).
Energtek was granted a license by Israel's Ministry of National Infrastructures for the exclusive exploration, production and sale of hydrocarbons present in the 19,000 acre Nir-am Sa'ad block in Southern Israel, in the West Negev region. The licensed area is adjacent to the Heletz oil field from which over 16 MMBO have already been extracted. No deep-well drillings have been performed in the licensed area during the past decades.
The U.S. Geological Survey published in March 2010 by the U.S. Department of the Interior, "estimated a mean 1.7 billion barrels of recoverable oil and a mean of 122 trillion cubic feet of natural gas in the Levant Basin Province using a geology based assessment methodology," according to the report's executive summary (http://tinyurl.com/israel-oil). The basin covers much of Israel, including the surveyed Nir-am Sa'ad field.
"We are encouraged by the early report on the Nir-am Sa'ad field, said Energtek CEO Lev Zaidenberg. "The survey identifies the potential for significant energy reserves in a country in which energy independence and indigenous energy resources are even more critical for national security and economy than in other places. We intend to proceed forward exploring the available quantities of oil and natural gas, and we are looking forward to the possibility of exploiting the resources."
Energtek develops and applies proprietary low-pressure storage technology to provide complete well-to-wheel pipeless Natural Gas supply solutions to industrial consumers and fleets of small vehicles. Energtek's Natural Gas solutions reduce pollution and alleviate consumer energy costs. Energtek provides competitive bulk transportation solutions to industrial users and a profitable alternative motor fuel solution for 2- and 3-wheel vehicle drivers in Asia. Energtek operates subsidiaries in North America, Europe, Asia and the Middle East. To learn more about Energtek, visit http://www.energtek.com
This release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of Energtek and its technologies. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and other matters set in Energtek's filings. These risks and uncertainties could cause actual results to differ materially from those indicated in the forward-looking statements.
Contacts: Investor Relations IR@energtek.com +1-212-999-6202
SOURCE Energtek Inc.