In a statement Givot Olam said, “The analysis indicated reservoirs of oil in rocks dating to the Lower Cretaceous Period and the oil-bearing layer could be 20 meters thick. But just 20% of the reserve is extractable. [However], that the assessment of the reservoir's size and extractability could change significantly as development progresses.”
“Due to the rock formation at the site, horizontal rather than vertical drilling would be required,” it added. The company did not elaborate on the fact horizontal drilling has yet to proven of depths greater than 2 km. Meged-4 is 4.5 km deep.
According to Divot Olam director Tovia Luskin, “The company would need to raise US$20-US$50 million to develop the find, which [I hope] will begin within a year.”
Givot Olam had originally assessed the field to be 50 cubic metres wide last year. In February it announced the oil reservoir was four times bigger and capable of yielding US$6 billion worth of oil.
An Israeli oil expert has questioned the company’s claims. Amit Mor, reported as an oil expert, said Divot Olam had made claims of oil discoveries in the past that had not eventuated. “They have a credibility problem,” he said.
