Genie Energy has said that, consistent with its prior public statements and disclosures, preliminary evidence from the exploratory wells drilled by its Afek subsidiary in Northern Israel confirms the existence of significant quantities of oil and gas within its exploratory license area.
As yet, Genie does not have sufficient evidence to determine whether this or any part of the resource can be technically or economically produced. The resource does not constitute proved, probable or possible reserves.
The resource is present at multiple strata and in some of the explored portion of the license area is up to 350 m thick -- a finding consistent with the company's geological model. The thickness of the resource is one of many factors considered in making a determination of the commercial potential of this or any resource.
"We remain optimistic given the results to date," said Howard Jonas, Chairman and CEO of Genie Energy. "In term of quantity, our log results indicate that this could be a significant find if analogous conditions are present over a significant portion of the license area. We are now working diligently to determine the production costs and total quantity of the resource."
The company has completed drilling two exploratory wells within its license area and begun drilling a third pursuant to a ten well exploratory program. Analysis of data obtained from these exploratory wells is ongoing.
Edited from press release by Angharad Lock