Tomco Energy Regulatory News (TOM)

3 Jul 2008 07:00



TOMCO ENERGY PLC

("TomCo" or the "Company")

TRACS RETAINED TO REPORT ON THE HELETZ FIELDS OIL AND GAS RESERVES

TomCo Energy Plc (AIM: TOM) is pleased to announce that the international consultancy firm TRACS International Limited ("TRACS") has been engaged to study the oil and gas reserves underlying the Heletz and Iris Oil Fields ("Heletz Fields") in the State of Israel.

With a team of over 50 professionals, TRACS operates from offices in Aberdeen (Scotland), Guildford (England) and Moscow (Russia). TRACS provides technical assistance in the disciplines of geophysics, geology, petrophysics, reservoir engineering, production technology, well engineering and completions design and petroleum economics. TRACS provides its consultancy services to a wide range of companies operating in the upstream oil and gas industry including a number of the world's largest multinational oil and gas companies.

TRACS will prepare estimates of remaining proved, probable and possible oil and gas reserves attributable to the Heletz Fields. TRACS will also evaluate the potential exploration upside in the fields including an outline of the Contingent and Prospective Resources. The report is expected to take two months to complete.

TRACS' project scope includes a subsurface review of the existing recoverable reserves in the fields with consideration to volumes of hydrocarbons in place, the building of partial or full field static and dynamic models, an outline of future development scenarios, e.g. water flooding and/or infill drilling and an assessment of the deeper exploration potential. 

"The preparation of a bankable reserve report will provide an additional cornerstone to the Heletz fields redevelopment project," stated Howard Crosby, CEO of TomCo. "The addition of a TRACS reserve report will assure the financial community of the oil reserves of the Heletz Fields in Israel and the exploration and development potential of the Jurassic Limestone"

Heletz Fields Background

The Heletz-Kokhav-Brur license and the Iris license equaling approximately 68,000 acres, are comprised of 3 oil fields - Heletz, Brur and Kochav, and are located approximately 55 km south of Tel Aviv and 12 km east of the Mediterranean Sea. Heletz was the first oil field discovered in the eastern Mediterranean and remains the most significant oil field discovered onshore Israel with over 17 million barrels of oil having been recovered from an estimated 50 millions barrels of oil in place.

The first well (Heletz 1) was drilled to a depth of 4800 feet (1515 meters) and recognized as a producing well on 12 October 1955. Initial production was approximately 400 barrels per day; oil was 29o API. A total of 88 wells have been drilled on the Heletz field to depths ranging from 4,000 to 6,500 feet, of which 59 were producing wells with the other 29 having oil shows. Peak production occurred in the 1960's when daily production peaked at over 4,000 barrels of oil per day ("BOPD"). 

TomCo recently announced that production has restarted from the Heletz field at a rate of 35 BOPD from two wells with a further three currently being prepared for production.

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Notes:

TomCo is an AIM listed company which has investments in conventional oil production n the United States and Israel. The Company also owns leases on approximately 3000 acres of shale oil holdings in Utah, estimated by SRK (an independent firm of mining consultants) to contain some 230 million barrels of oil.