Modi'in exploration partnership: significant oil marks were found in California

The Modi'in exploration partnership reported the results of the production tests at the Bordeaux drilling project at Grapevine in California. Modi'in, together with its partners, began drilling in March, and after significant oil marks were found, it was decided to carry out production tests. The production tests took place between May 19 and June 12 (May 31 at the wellhead was closed for four days), during which 3,356 barrels of oil were produced. The production tests were performed in an independent flow without a pump when the operator regulates the production rate, which averaged about 178 barrels per day during the test period.
In the coming months, the Partnership will publish a resource report prepared by an external assessor based on the results of the production tests, based on the existing data at this stage, the existing resources in this Prospectus will be evaluated. According to the findings of the resource report prepared prior to the start of the drilling, the best estimate of the volume of oil reserves in this Prospectus is estimated at 13.6 million barrels.
Results and Analysis of the Findings During the production tests at the Well, the Partnership's opinion was expressed in the drilling regarding the existence of an oil discovery. According to initial estimates, the amount of oil discovered so far in the drilling justifies the examination and estimation of the total amount of oil resources in the well, and the performance and estimation of the quantities of oil available for economic production.
Now, the project partners are examining the development possibilities of the reservoir, and are considering additional drillings in the project area.
The share of Modi'in in the Grapevine project stands at 23.5%. The drilling of the Well at the Sauvignon Prospect, which was drilled last year for a permanent production, is currently being completed, which will significantly reduce the production costs of this drilling. Modiin's share of revenues from the first drilling in the Sauvignon prospect in the Grapevine project was estimated at $ 340,000 in the first quarter of 2018.
At the end of April, Modi'in reported that the Cassini drilling, the first of three joint drillings with Area Energy, had reached its final depth, and this drilling also showed significant signs of gas and oil. The drilling partners, including Modi'in, are preparing for production tests, which are expected to begin in the coming weeks. In a resource report prepared by an external evaluator, the oil and gas resources in the Cassini project were estimated at 24.2 million barrels of oil, and Modi'in holds 35.625% of the rights in the Cassini project.
At the same time, Modi'in is currently partnering in a drilling project in the Trinidad 7 project in the Mountain View project. The drilling, which began in early June, is expected to take several weeks (not including production tests), reaching a final depth of 4,176 meters. The resource report indicates that the best estimate of oil and gas resources in the drilling is estimated at 5.4 million barrels, which are located in four target layers, all of which will be examined in this well. Modi'in holds a 26% stake in this drilling.