Brownstone Energy receives updated resource reports on Gabriella and Yitzhak licenses, offshore Israel
Thursday, Mar 15, 2012Brownstone Energy Inc. (TSX VENTURE:BWN)(OTCQX:BWSOF) ("Brownstone" or the "Company") today announced that it has received two independent resource reports (collectively the "Reports") including a best estimate in aggregate of 232.2 million barrels ("MMbbl") of oil and condensate, including 110.1 MMbbl of contingent oil, and 1.8 TCF of gas on the Company's Gabriella License and Yitzhak License (collectively, the "Licenses") located offshore Israel. The Reports were prepared by Netherland, Sewell & Associates, Inc. ("NSAI") of Houston, Texas.
NSAI conducted an assessment of the Gross (100%) Contingent and Unrisked Prospective Resources located in the #378 / Gabriella block and the Gross (100%) Unrisked Prospective Resources in the #380 / Yitzhak block, both as of March 1, 2012. Approximately 465-km2 of 3D seismic data was acquired in 2010 and 2011 for the Licenses. The data was shot on an azimuth of 23 degrees and was processed by CGG Veritas. This survey was processed with another smaller 197-km2 3-D seismic survey shot on an azimuth of 343 degrees.
Sheldon Inwentash, CEO of Brownstone Energy comments: "The Netherland and Sewell independent evaluations of our offshore Israel Gabriella and Yitzhak blocks further confirm that Brownstone has significant high impact exploration projects in our portfolio of world class assets.
The upcoming exploration well on the Gabriella block will target the same Jurassic carbonates that tested oil in the Yam Yafo 1 well that was previously drilled on the block in 1994. As a result, Netherland and Sewell have classified these resources on the Gabriella block as contingent resources, with a gross best estimate of 110.1 MM barrels of oil. If we include associated gas, the total gross number increases to 128.4 MM barrels of oil equivalent.
On our Yitzhak block, where we are also progressing our drilling plans, Netherland and Sewell has used our newly acquired and interpreted high resolution 3D seismic data to significantly increase previous gross prospective resource estimates to 79.1 MM barrels of oil. If we include associated gas, the total gross number increases to 92.3 MM barrels of oil equivalent. Netherland and Sewell have given the Yitzhak block a 40% chance of geologic success, as it is adjacent to, and similar to, the Gabriella prospect which has already tested oil in the same Jurassic carbonates we are targeting here.
Cumulatively, the Gabriella and Yitzhak blocks hold a gross total of 220.7 MM barrels of oil equivalent resources within the Jurassic carbonates, with Brownstone holding an unencumbered 15% working interest in each block. As we move forward with our drilling plans we note that analogous projects with similar geologic and technical parameters have been successfully commercialized in many jurisdictions around the world."
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