05.07.2009
A light inert gas and the second most abundant element in the universe.
Tracking mirrors used in solar energy.
Avenue Group won a license to carry out exploration activity in the Haletz Kochav field which spans 230 thousand dunam from Tel Aviv in the North to the Gaza Strip in the South, which is the only significant onshore oil field in Israel. The 60,000 acre licenses contains Kochav, Barur and Haletz oil fields from which 17.2 million barrels of oil have been produced to date of the estimated oil in place of 94.4 million bbl (P50). Heletz-Kokhav License is 60,000 acres was awarded in September 2007 (75% to Avenue and 25% to Lapidtoh). The Iris license is 8,000 acres awarded in February 2008 75% to Avenue and 25% to Lapidoth. Heletz was the first oil field discovered in the Eastern Mediterranean and remains Israel most significant oil producing field. It was first discovered in 1955. In between 1955 and 1962 drilling of development and step out wells was carried out in the Heletz area and wells in the Brur area. Between 1962 and 1968 drilling of development and step out wells in the Kokhav area following the oil discovery of Kokhav 1. Between 1969-1997 step out and field extension wells. All in all 88 wells were drilling during the lifetime of the lease over an area of 4,500 acres, 60 of which were deemed producing wells. The first well (Heletz 1) was drilled to a depth of 4800 feet (1515 Meters) and recognized as a producing well on 12 October 1955. Peak production occurred between 1959-1967 when daily production was between 2,500 and 4,000 barrels of oil per day (“BOPD”). Heletz is said to have produced 17.2 Million barrels of oil to date out of an estimated 19.1 Million barrels of primary recoverable reserves and an estimated oil in place of 94.4 mm bbl and remains the most prolific oil field discovered onshore Israel. 4 wells were shut-in in August 2006. The field was restarted in June 2008.
A provision in an oil or gas lease that perpetuates a company’s right to operate a concession as long as the concession produces a minimum paying quantity of oil or gas.
A type of contract used to establish a predetermined price that will be paid for a given amount of electricity regardless of what the actual market value of that energy might be at the time it is delivered to the customer. This type of contract provides the purchaser with the certainty of a fixed price for the commodity and insures a guaranteed sale price for the seller
Companies may reach agreements with financial institutions to hedge a portion of their oil and gas production in order to provide them with downside protection should the price of oil and/or gas go below their credit facility comfort.
Some companies manage the risk of price fluctuations by hedging. When an oil producer hedges the price of his output, he essentially locks in a cash flow. If the price of his physical oil drops below the hedge, his net earnings increase, but if the physical price rises above the hedge, his net earnings decrease. Hedging ensures a certain rate of return and thus piece of mind for the producer. Oil hedging is an individual company’s decision. It depends on: short-term oil price projections; if the company is a supplier (hedging against bearish markets) or an end user (hedging against bullish markets); what percent of the company’s expenses or profit the oil represents; the company’s risk tolerance