TomCo Energy reports near doubling of oil-in-place in Heletz Field

Tomco Energy announced the results of a revised TRACS (independent reporting agency) report nearly doubling the estimated Heletz Field oil reserves in southern Israel. In addition to the estimated 94.4 million barrels estimated by TRACS (whose report only included the shallow Cretaceous section), Tomco estimates an additional 100 million barrels of reserves at the lower Jurassic level.

Here is Tomco’s announcement as reported by the UK’s Proactive Investors (http://www.proactiveinvestors.co.uk/companies/news/3549):

TomCo Energy plc (AIM: TOM), the AIM listed oil and gas exploration and production company with investments in the United States and Israel, released an updated independent Reserves and Resource evaluation and audit of the Heletz Field, Israel.

The study, undertaken by TRACS International, (‘TRACS’) reported an mid-case (P50) estimate original oil-in-place for the Heletz Field of 94.4 million barrels, with a range from 52.7 million barrels (P90) to 164.4 million barrels (P10).

Tomco said the revised estimate represented a “significant increase” over the previously quoted figure of 50 million barrels. The additional resource largely emanated from the inclusion of “substantial additional volumes of oil in lower quality carbonate reservoirs” in the Cretaceous reservoir section of the field.

Around 17 million barrels have been produced from the field to date, mainly from the “better quality sandstone reservoirs” in the middle of the Cretaceous reservoir section.

TRACS International additionally calculated a 2P (Proved plus Probable) reserve of 974,000 barrels, of which 720,000 barrels are Undeveloped Reserves.  Tomco and joint venture partner Avenue Energy  will be targeting the undeveloped reserves in their 2009 work over and infill drilling campaign. The 3P (Proved plus Probable plus Possible) upside reserves are 1.87 million barrels. Tomco’s net interest in these reserves is around 35%.

TRACS further identified 3.5 million barrels of 2C Contingent Resources and 8.5 million barrels of 3C Contingent Resources. Approximately 63% are in the Kokhav Dolomite.

Howard Crosby, the Company’s CEO, said: ‘We are very pleased with the TRACS Report with original Oil-in-Place (P50) estimates almost double the figure previously released. It is also our belief that the planned work program for 2009 can significantly increase the proven and probable reserves and the Report also confirms the huge up-side potential that further exploitation can unlock at the Heletz Field.’