Permian potential overview

Historical Overview

Geological Model

Reservoir Stimulations

Financial Overview

Points

Globe exploration is oil & gas exploration and development company established in 2009.

The company has 3 exploration blocks licensed in Israel and a well currently in drilling stage.

Globes exploration geological model suggest drilling into deep geological layers where oil & gas production has been proven.

Historical Overview

Geological Model

In 1993 a well called David-1 was drilled in Ofek license(ModiinNorth in the Past). The well Penetrated the Triassic and Permian layers to total depth of 5998m.

During drilling the Permian layer, mud gas shows were observed up to 18% Equivalent methane in air(High Gas readings).

Wireline logs were taken from the wellbore and analyzed by petro physical experts from Schlumberger and Loren & Associates in Texas.

Geological model

Logs results by Loren & Associates showed Gross Pay of 325 meters and estimated 1.5 to 1.8 TCF of gas in place assuming 30 km2 structure as seen in seismic from 1993.

Schlumberger reported 333 meters of Gross Pay and estimated Net pay of 73 meters, porosity in the range of 2% - 6%(average 4.5%), permeatility of 2 to 5 mD and Hydrocarbon saturation higher than 75% through all the Gross Pay.

Production Test were no carried due to casing collapse above the Permian section.

Geological model

Source Rock:

In the Meged field which is structured right by Globes exploration

Ofek license quality oil and gas has been found and produced

(about 400,000 bbl to date from single well site, 40 more are planned

to be drilled in that field), the oil was analyzed for biomarkers by

Geomark Research, Inc. in Houston, Texas and found to be of Silurian

Source capable of charging Permian & Triassic traps in the area.

Geological model

Reservoir Rock:

As seen in drill cutting and Wireline logs, the reservoir rock is

Dolomite\Limestone Grainstone facies.

The reservoir rock is similar in many aspects to the Khuff formation which is a major gas producing formation through the middle east.

The similarity shows in age, lithology, porosity type(micro-fractures,

intergranular),environment of deposition and kerogen type.

Geological model

David 1 lithology log

Structure:

Old seismic section showed faulted block structural trap 30 km2 in size.

New interpretation(PSDM) from end of 2010 indicate the block is up to

50 km2 in size.

Geological model

Reservoirs of similar kind(Khuff Formation) are stimulated very successfully through the middle east.

Study was made by Schlumberger and Saudi Aramco(NOC in Saudi Arabia), the study shows that khuff formation undergoes fracture acidization improve production greatly.

Reservoir Stimulation

Conclusion of Schlumberger and Saudi Aramcos study from paper Positive Reactions in Carbonate Reservoir Stimulation:

Reservoir Stimulation

Picture of acid stimulation

Currently the company holds a net sum of 3 million USD$ after drilling of ofek-2 sidetrack(sidetracking David-1 well).

Gas prices in israel are 5 USD$ per Mmbtu according to Tamar gas project.

Well to Permian costs 15 million USD$ and well to Triassic about 8 million USD$.

Financial Overview

Ofek license area is close to existing gas infrastructure and PRMS stations.

In 2016 it is assumed Tamar gas field could not support all the domestic needs of Israel.

Tamar Field was announced as a monopoly which makes it easier enter the market.

Gas Pipeline and infrastructure is considered in Israel as National Infrastructure which makes it easier to approve and speeds up the cashflow.

Financial Overview