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Natural gas was found off the shore of Israel estimated at 95 billion dollars

 Today it was reported that there a substantial amount of Natural gas found in an offshore drilling off the coast of Israel.

Leviatan – the Natural gas drilling project which is owned by (in brackets the percent of ownership): Delek drilling (22.67%) , Avner (22.67%) , Ratio (15%) and Nobel Energy (39.66%), was reported today to contain an estimated amount of over 16 TCF (trillion cubic feet) Natural gas.

This recent finding was reported to be the biggest Natural gas caches this year for offshore drilling worldwide, and is nearly twice the amount of Natural gas caches that were found last year in the drilling area Tamar – another offshore drilling project off the shores of Israel.

As a result of this news the stocks of the above-mentioned companies rose substantially, with Delek drilling rising by 5.12%, Avner by 4.44% and Ratio by 10.27% at the Tel Aviv Stock Exchange.

This Natural gas finding is estimated to be worth roughly 95 billion USD (before discount), and could have a very positive effect on the Natural gas market.

The total estimated amount of Natural gas found of coast of Israel in the past couple of year is 25 TCF, and is estimated to provide more than the total consumption of Natural gas in Israel for the next 50 years. Thus, it is speculated that this recent finding will be more targeted as export to Europe.

The fight over this finding, however, has just begun as there is a committee that will decide how many royalties and taxes these drilling companies will have to pay for these Natural gas caches, which I have reviewed in the past.

The next step is to see if there will also be in this Leviatan drilling area crude oil.

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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.