GeoGlobal Resources Inc. announced a summary of the Resource Report prepared by Netherland, Sewell & Associates, Inc. (NSAI) of Houston, Texas on the offshore Israel licenses known as 347/Myra and 348/Sara. The Company holds a 5% participating interest in each of these licenses and is designated as the operator.
NSAI conducted an assessment of the gross (100%) prospective resources as of June 15, 2011. Prospective resources are those quantities of petroleum, which are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. The prospective resources included in the Resource Report indicate exploration opportunities and development potential in the event a petroleum discovery is made and should not be construed as reserves or contingent resources.
"The completion of the NSAI Resource Report represents another major milestone in our operations in Israel" said Paul B. Miller, President and CEO. "The results independently confirm our belief that Myra and Sara are high potential exploration blocks. Our primary target of the Tamar (Oligocene/Miocene) sands in both Myra and Sara have a 63% and 54% chance of geological success. Further, during the interpretation of the reprocessed 3D seismic, we have potentially identified additional gas targets as well as deeper oil targets. This NSAI Resource Report provides GeoGlobal and its partners with independent confirmation of valuable information as we prepare to initiate our drilling program."
Resource estimates may be prepared using either deterministic or probabilistic methods. In the deterministic method, a discrete value or array of values for each parameter is selected based on the estimator's choice of the values that are most appropriate for the corresponding resources category. A single outcome of recoverable quantities is derived for each deterministic increment or scenario. In the probabilistic method, the estimator defines a distribution representing the full range of possible values for each input parameter. These distributors may be randomly sampled (typically using Monte Carol simulation) to compute a full range and distribution of potential outcome of results of recoverable quantities. This approach is most often applied to volumetric resources calculations in the early phases of an exploitation and development project. The prospective resources shown in this Resource Report have been estimated using probabilistic methods and are dependent on a petroleum discovery being made. If a discovery is made, the probability that the potentially recoverable volumes will equal or exceed the unrisked estimated amounts is 90% for the low estimate, 50% for the best estimate and 10% for the high estimate. Mean values are reported in addition to the low, best and high estimates. The mean is the arithmetic average of all the possible outcomes.
The following table shows the risk elements and overall probability of geological success for each prospect.
The estimates for risked resources are derived directly from the estimates for unrisked resources incorporating a geologic risk assessment for each prospect. Geologic risking of prospective resources addresses the probability of success for the discovery of petroleum; this risk analysis is conducted independent of probabilistic estimations of petroleum volumes and without regard to the chance of development. Principal risk elements of the petroleum system include: (1) trap and seal characteristics; (2) reservoir presence and quality; (3) source rock capacity, quality and maturity; and (4) timing, migration and preservation of petroleum in relation to trap and seal formation. Geologic risk assessment is a highly subjective process dependent upon the experience and judgment of the evaluators and is subject to revisions with further data acquisition or interpretation. The primary risk for all of the reservoirs except the Oligocene/Miocene reservoirs is reservoir quality. The reservoir quality risk is high because no well log data exist in the immediate vicinity to determine the porosity ranges of the reservoirs. The primary risk for the Oligocene/Miocene reservoirs is trap integrity. For the Sara license, trap integrity of the Oligocene/Miocene reservoir is high because the trap depends upon fault seal. For the Myra license, trap integrity of the Oligocene/Miocene reservoir is high because the structure may not close to the south.
Certain abbreviations used within the NSAI Resource Report and within this press release are as follows:
-- MBBL is thousands of barrels
-- MMCF is millions of cubic feet
-- P10 is 10% confidence level
-- P50 is 50% confidence level
-- P90 is 90% confidence level