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$EGTK Oil & Gas Exploration

NirAm-Saad License

Energtek Products Ltd, wholly owned subsidiary of Energtek Inc, incorporated in Israel, was granted (100%) the license for exploration, production and marketing of oil and gas at the Nir-Am – Saad Exploration Block in North-West Negev. The license was granted by the Ministry of National Infrastructures in accordance with the Oil Law (1952). The territory of the license has an extension of 75 hectares.

NirAm-Saad block is located in South-West part of Israel, approx. 60 km South of Tel-Aviv and 20 km South of Ashkelon). Heletz-Brur, the only significant oil field in Israel that produced oil during many years (tiny quantities are produced till now) is in the North border of NirAm block. Shikma, another small gas field that produced natural gas during 10 years, is located a few kilometers North-West of NirAm block.

There are commercial quantities of shallow gas (depth of 200-500 m) and significant prospective oil resources (depth of 1,700-4,000 m) in the block.

Shallow Gas Exploration and Development

Small quantities of shallow gas were discovered in 1980s but in that time such reservoirs were considered as non commercial. Due to the current market conditions and Energtek’s gas delivery technologies these gas resources can be now commercialized.

In order to evaluate possible reservoirs potential and possibilities of the field development, Energtek employed a team of geologists who conducted a successful production test at the existing NirAm Gas 1 well and extracted new analysis of seismic and geophysics data.
Recoverable gas resources (contingent resources) of the reservoir drilled by NirAm Gas1 are estimated to be about 1.7 BCF. Prospective gas resources including three additional reservoirs in the block are estimated to be about 5 BCF.

Energtek plans to implement commercial production from the NirAm Gas 1 well and to drill additional wells for exploiting the shallow gas reservoirs potential.

Deep Oil Resources Exploration

Energtek conducted a geological survey and developed a number of exploration leads for oil exploration in depths of 1,800-2,220 m. Prospective oil resources in these leads are estimated at about 26 MMBO (recoverable).

There are also old leads and undrilled prospects for additional prospective resources of 12 MMBO (recoverable) in depths of 3,200 - 4,000 m.

Currently Energtek is organizing geological and seismic works targeting further evaluation of oil potential and development of the drilling program.

Hydrocarbons Potential of the Area according USGS Report

Undiscovered reserves potential according to April 2010 US Geological Survey USGS report:
Natural Gas – 122 Trillion Cubic Feet (mostly in deep water)
Oil - 1.7 Billion Barrels of Oil (mostly on-shore and in shallow water)