Canadian company, American geologists explore for giant oil fields in Israel
RIS Resources International, a Canadian listed company has tied up a 200 sq. mile ex-ploration permit in the Yizreel Valley between Haifa and the Sea of Galilee. Using modern exploration technology, they are exploring for giant oil fields in a part of the Middle East that has seen limited drilling activity.
"Israel has been poorly explored," notes Noah Fishman, a Texas based geologist who was involved in generating what has come to be known as the Megiddo prospect. "Yet the geology in our permit area is surprisingly similar to some of the giant fields in West Texas. there is no scientific reason to believe that hydrocarbons some-how failed to accumulate in Israel. In fact I regard Israel and particularly the Syrian Arch trend, as highly prospective."
Baruch Halpert, an Israeli born citizen who runs the Israel operations for RIS from his office in Tel Aviv, emphasizes the high quality of the work that is going into the exploration effort by the American and Israeli geologists.
"Obviously it would be good for my country if we could discover a significant oil field," he says, "but that is not why we are going to drill. We are business people. We are risking money because we hope to make a huge reward. Our seismic and geological work has defined two extremely large structural targets in the permit area so far, and we are conducting more seismic work to get a better look at two more structures. We have drill core and samples from two nearby wells that show live oil in the target reservoirs."
"I like doing business in Israel," says Marc Bruner, a director of RIS Resources International. "Israel is a dem-ocracy that enjoys the rule of law. The ministry of Energy and Infrastructure is very cooperative and the sharing arrangements are very favorable compared to the rest of the Middle East."
The company, which has 100% working interest. (80% net revenue interest) in the permit area, has only recently started to show the prospect to potential industry partners. "We plan to farm our half of this on a third for a quarter basis," says Marc Bruner. "Our end of the drilling costs will be financed with equity in Europe and Canada. People are very interested in this story."
"There is an opportunity here because the Seven Sisters have never been interested in drilling in Israel," says Baruch Halpert. "The reasons are obvious. With huge oil fields in the Arab countries, it would not be smart politics for the major oil companies to deal with Israel. This is one reason my country has not been well explored." He smiles. "We hope to change that."
Return to Business ArchivesBack to Top