05.07.2009

Potential area where one or more accumulations are currently poorly defined and require more data acquisition and/or evaluation in order to be classified as a prospect. A lead will occur within a play.

A project associated with a potential accumulation that is currently poorly defined and requires more data acquisition and/or evaluation in order to be classified as a prospect.

Project activities are focused on acquiring additional data and/or undertaking further evaluation designed to confirm whether or not the lead can be matured into a prospect. Such evaluation includes the assessment of the chance of discovery and, assuming discovery, the range of potential recovery under feasible development scenarios.

The removal of readily soluble components, such as chlorides, sulfates, organic matter, and carbonates, from soil by moving ground water

Founded in 1990, IUED is a membership-based organization with over 4,000 members. Its staff of 27 includes lawyers, scientists specializing in air and water quality concerns, a solid waste management specialist, a landscape architect/planner, an environmental economist and university student interns in a variety of disciplines. IUED is increasingly regarded as Israel’s most influential environmental organization

IEC has 4 types of tariffs: residential, lighting and public streets, time of use, other

Generally when a well drains the hydrocarbons of an adjacent lease the hydrocarbons are deemed to be from the lease on which the well sits (i.e. if you’ve captured it you keep it).

Rule of capture is defined as “the legal rule of non-liability for (a) causing oil or gas to migrate across property lines and (b) producing oil or gas which was originally in place under the land of another, so long as the producing well does not trespass ( i.e. it does not penetrate into an adjoining licensed area)”

Trade prices in the Mediterranean basin. For instance, the liquid fuel components (fuel oil and gas oil) in IEC’s basket of fuels will be reviewed on a regular basis according to the changes in CIF LaVera prices which will be taken from the fuel management department base on the Platt’s oil gram price report. >

Carriers that are employed in international crude oil trade. The size of tanker that can be used in any trade (commercial voyage between a port of origin and destination) is dependent on the tanker’s length and loaded depth and the size of the loading and unloading ports. The larger ships are used because they reduce the cost to transport a barrel of crude oil. A VLCC is a tanker of 150,000 to 300,000 dwt. VLCC of 250 KT is the largest capacity that can be accommodated in Israeli ports

Lapidoth Israel Oil Prospectors Corp. Ltd. is the forerunner of onshore oil prospectors in Israel. The company was incorporated in 1959 and privatized several years ago. Currently, its securities are being traded in the Tel Aviv Stock Exchange.

Lapidoth has specialized in the design and operations of onshore oil or gas drilling and production activities for more than five decades. These activities include the provision of all auxiliary services related to exploration and production. Since its inception the company has drilled over four hundred onshore wells of various depths in Israel and worldwide. It has also discovered and developed the Israeli Heletz Oil Field (from which more than 17 million oil barrels were produced to date). Over the years, Lapidoth has expanded its scope of activities to include drilling of water wells, monitoring production, research drilling and soil sampling. Furthermore, the company is currently the controlling holder of Lapidoth-Heletz Limited Partnership. This Limited Partnership was incorporated in 2004 for the purpose of executing oil and gas explorations in Israel and is also listed in the Tel Aviv Stock Exchange.

Lapidoth considers itself a “one stop shop” that provides all major services that may be required by operators, including drilling, logging, cementing, production, petrophysics, reservoir engineering, logistics, research drilling and soil sampling. All these services are available as a “package deal” or on a “stand alone” basis.

In additions to its “traditional” operations, Lapidoth uses its positive cash flow to execute various financial transactions.

Yaakov Luxembourg who holds 79.8% of Lapidoth Heletz and is one of Israel’s most veteran players in the gas exploration sector

Partners in Benjamin South or Oz
Lapidoth: 41.5%
Frendum Investment Ltd. 31.5% (פרמדום)
Coleridge Gas &Oil Israel Ltd. Partnership 12% (קולרידג’)
Placida Investment Ltd. (פלסיגה)
Caspian Drilling Company as the operator 5%

The terminal, completed in July 1981, is the United States’ most modern LNG importation terminal. Three LNG storage tanks specially designed to store LNG at cryogenic temperatures for sustained periods with a combined capacity of approximately 2.7 million barrels (425,000 cubic meters) of LNG, or approximately 9.0 billion cubic feet (bcf) of gas. When operating at peak capacity, the terminal can regasify LNG and send out natural gas at a maximum rate of 2.1 bcf per day and has a firm sustained capability of 13.7 million metric tons per annum. US LNG imports totaled 350 Bcf in 2008, according to the Energy Information Agency, which predicted that they would increase to 420 Bcf in 2009

South Korea’s state-run Korea Gas Corp is also the world’s biggest importer of LNG. South Korea is the world’s second largest importer of LNG after Japan