The subject at hand now is the reported 5% interest in the Daniel East and West offshore Israel fields. It was reported that the field could contain 8.9 trillion cubic feet (TCF) of natural gas. It also reported that “Gas reserves this size could significantly change the Israeli gas market”.
To give folks an idea about the size, this would be the third largest field off shore Israel; with Leviathan reported at 19 TCF and Tamar reported at 10 TCF, only these two fields are larger.
In comparison, ATP’s Shimshon discovery was reported at 0.55 TCF.
Israeli government documents show ATP with a 5% interest Shimshon and Daniel East and West fields.
It is interesting to me that after the Equity Security Holders Status Conference in 2014, Nancy Holley told me that this 5% interest in these Israeli fields wasn’t worth anything. Now it appears these assets could be worth hundreds of millions to ATP. Maybe just maybe these assets can now be sold and be used to pay off the DIP.
It appears to me that quick math suggests a $950 Million value for ATP; with ATP selling and getting a 50% value minimum ($475 million) paying the dip off and then starting to pay the bond holders just might become a reality. Leaving the BP claim left to be litigated and paid. Maybe just maybe Equity holders just might get paid a very handsome payout. This just builds my case with the Texas Secretary of State regarding ATP equity holders rights of Corporate Government have been denied.
Having send that, can someone tell me what happened to ATP East Med Israeli subsidiary asset which were. (These were interest in addition to the 5% for ATP corp.)
a. a 35% participating interest in the 332/Simshon License,
b. a 35% participating interest in the 391 Daniel West License, and
c. a 35% participating interest in the 392/Daniel East License
When ATP Netherlands was sold these assets were to be conveyed to ATP the Debtor. Thus, the entities in which the Israeli Assets were held, along with certain other Eastern Mediterranean entities, would remain property of the Debtor’s estate following the sale of ATP Netherlands.
With the Automatic Stay court document 1046, ATP should still hold these assets.
It appears to me Isramco somehow now owns the Israeli assets held by ATP East Med. So we lost the 35% interest; but somehow ATP Corp retained its 5% ownership interest.
How do you lose 35% and retain 5%, I don’t recall any court filing and or notice given equity holders that our 35% stake in these licenses were lost and or sold. Can you image if ATP still retained a 40% interest in these properties. Folks that would be a 40% interest in $19 billion dollars of value! The dip would not allow one penny to be spent on the development of these assets and BP should also be held accountable for these lost revenue opportunities from these lost assets. (Cause and affect)
To compare the value of natural gas vs. crude, there are about 1 million BTUs in an MCF of gas. (Thousand cubic feet of natural gas) and about 6 million BTUs in a barrel of oil.(Six to One) As a side note there are one million Btu in about 8 gallons of gasoline.
Current US price is $2.26 per MCF of natural gas and the Crude price today is $30.39 a barrel, the natural gas equivalent (6 to 1) $13.56 for 6 million BTU’s vs crude at $30.39 for 6 million BTU’s, which commodity has a bigger upside? Then compare the worldwide price for LNG today in Japan $8.50 per MCF. Any wonder why OPEC is willing to sell their crude at today’s low prices.
Timer Saver in Slidell LA today has gasoline at $1.36 a gallon. One million BTU of gasoline (8 gallons) would cost $10.88 vs natural gas for one million BTU’s today at $2.26. Which commodity has the bigger upside?
With the US now able to export natural gas and sell on the world market, which commodity has the bigger upside?
Natural gas power plants, natural gas transportation vehicles; those that down play the future value of natural gas should look at the potential value of the US exporting LNG to the world and those dollars coming back into this country. The balance of trade numbers will tilt back in favor of the US and the US economy will grow stronger. You should check out the prices paid for LNG around the world.
The comment “Gas reserves this size could significantly change the Israeli gas market”. They too may elect to export LNG to the world markets.
