The Gal block is close to the Leviathan field which was discovered by Ratio geologists in December 2010. There is no reliable estimate of potential reserves for the 1,770 sq km Gal license which extends along Israel’s southwestern Exclusive Economic Zone (EEZ).
MEES understands that the partners are still evaluating recently shot 3D seismic but are more likely to have a better understanding of the block’s potential in 1Q13. The deal also allows Edison to buy an extra 20% of the block’s shares if commercial quantities of hydrocarbons are discovered. Edison, which is owned by Electricité de France, is also the field’s operator and will pay up to $5mn for the first exploratory well to be drilled in 4Q14. (CONTINUED - 936 WORDS)