Preliminary results of a Noble Energy appraisal well for natural gas in Block 12 of Cyprus’ Exclusive Economic Zone estimate the hydrocarbon reserve between 3.6tcf and 6tcf with a gross mean resource of 5tcf, Minister of Energy, Commerce, Industry and Tourism Yiorgos Lakkotrypis has said.

Lakkotrypis who was speaking during a press conference on the matter, assured that the government’s strategy remains to proceed with the construction of an LNG plant. He also said that that all political parties representatives, who were briefed before the press conference, agreed on the matter.

At the same time, replying to relevant questions, he recongised the possibility of a delay due to the fact that a new appraisal well will have to take place, which was not previously planned for.

He stressed however, that the government’s intention is avoid delays. “This is our intention”, he noted, adding however, “we need another appraisal well”.

Discovery’s net worth $12-$18 billion over 14 years
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Replying to a question as to the value of the discovery, Lakkotrypis said that a “very preliminary calculation” has been made considering the uncertainties in the market and whether the natural gas would be sold in the Asian or European market.
“We are looking at a net profit for the government anywhere between to $12 to $18 billion over a period of 14 years”, he pointed out, adding that “that is very preliminary but quite substantial”.

We are looking, Lakkotrypis noted, “at a gross value of the field of approximately $50 billion”, adding that calculations were made on the basis of the reserve containing 4.5tcf of natural gas.

“We are talking about a world class field by any standards”, he stressed.

Very large quantities of good quality natural gas in block 12, Noble says
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“Noble Energy that the A2 appraisal well has been completed safely and successfully”, Noble Energy Director in Cyprus John Tomich pointed out, adding that “the well confirmed the presence of very large quantities of good quality natural gas in block 12”.

He continued saying that Noble Energy “is working closely with the government of Cyprus and with our block 12 partners to find the quickest way to commercializing the gas”.

Tomich also noted that the “LNG project that we are now working on with the government remains our strategic priority in terms of commercializing the gas”.

Replying to a question as to whether he is disappointed with the findings, he said “absolutely not”.  The purpose of an appraisal process is to find what is really there, he noted, adding that “what we found is confirmation of a world class gas accumulation”.

He further pointed out that “we expect numbers to fluctuate between appraisal wells but we are very pleased with the fact that there is a very large gas field there”.

Asked whether there will be set back on plans Tomich said “not necessarily, we will be studying all of that with the government over the next weeks and months, but our goal is to bring this project to commercialization as quickly as possible”.

He pointed out that “we will be looking at all aspects of the project”. The rig, he added, “is just now leaving the location so there is a lot of information to be studied and assimilated”, noting that “it will take a little time”.

The goal, he assured, is still strategically to come up with an LNG project as quickly as possible.

New exploratory well in Block 12 within 2014
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The Cypriot Energy Minister further said that Noble is planning to drill anew within Block 12 within 2014.

At the same time he said that the ENI – KOGAS consortium who have signed a contract for hydrocarbons exploration in blocks 2, 3 and 9 within Cyprus’ EEZ are planning to drill in the third quarter of 2014, while Total, which has signed a contract for blocks 10 and 11, is also going ahead with drilling at the first quarter of 2015.

On his part, replying to questions, John Tomich, said that “we are very encouraged by the exploration potential of block 12”.

We have recognized, he added, “at least half a dozen separate features / structures and as a result we came back to a block wide 3D survey, very extensive survey”.

We are now processing that data, he noted, adding that we will be interpreting it and we plan to proceed with prioritizing the features to drill.

“To answer your question, yes, as far as calculating reserves, we would have to drill first, but there is a lot of potential left in the block”, he stressed.

Noble Energy operates Block 12 with a 70 percent working interest. Delek Drilling Limited Partnership and Avner Oil Exploration Limited Partnership each own 15 percent. On June 26, Cyprus government, Delek and Avner signed a Memorandum of Understanding (MoU) with regard to the construction of a Liquefied Natural Gas (LNG) terminal in the Cyprus.

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