Energtek has completed the required preparation of plans for an exploration drilling in the block licensed to Energtek in Southern Israel. The completed plans have been submitted to the relevant local authorities for obtaining the permissions to execute the drilling.

As previously reported, the company is progressing in its plans towards drilling a shallow gas well (800 feet) in the licensed block. This well targets a reservoir with estimated recoverable gas resources of approximately 1.7 BCF (Billion Cubic Feet). At the reservoir there is already penetrated a well that enables a stable production of small gas quantities.

The geological team has similarly identified three additional natural gas reservoirs in the licensed block. The prospective gas resources from the identified reservoirs may total 4 BCF, a quantity that would be valued over 15 millions of dollars at current market prices. The geological team advances in the work for identification of such additional reservoirs in the block.

Energtek plans to sell the natural gas extracted from the reservoirs on an ongoing basis to industrial consumers in the area, utilizing its proprietary mobile-pipeline system.

In parallel, Energtek continues works addressing the oil reservoirs, the work-plan including further analysis of geological data and preparation of prospects for drilling of deep oil targets. Previous assessments have estimated that recoverable oil resources may total approximately 20-40 million barrels. Such a quantity could be valued around $ 2-4 billion at current market prices.

"Energtek continues working to obtain maximum quantities of natural gas from its own sources, which will then be sold to local industrial energy consumers using Energtek's mobile transportation and supply solutions," said Lev Zaidenberg, CEO of Energtek. "We believe that this process that will lead towards the generation of revenues in Israel, in addition to our ongoing revenue generating activities in other countries."

Tags: Energtek Inc