PetroMed Gets Okay to Drill Offshore Israel


PetroMed has officially received permit approval from the Israel Ministry of National Infrastructures (MNI) to begin exclusive exploratory pursuit of hydrocarbons within the identified shallow water prospects offshore Haifa in northern Israel. PetroMed's Founder, Chairman and CEO Hagai Amir announced today that the exclusive exploratory rights cover more than 3500 square kilometers. PetroMed, which is based in Toronto with offices in London and Tel Aviv, has just filed for listing on the Frankfurt (DAX) stock exchange.

"PetroMed and its foreign investors continue to be interested in Israel and committed to the company's mission to build an Israel-based petroleum company that will be active in all aspects of the oil and gas business, from upstream exploration through to discovery approval, project development and downstream refining and distribution," said Mr. Amir.

Mr. Amir explained Israel consumes roughly 385,000 barrels of oil equivalent (boe) and it produces only about 1,000 boe daily. "This immense energy deficit is reflected in a balance of payments hemorrhage for Israel of over US $14 million daily," he said.

Mr. Amir stated that the PetroMed exploration and technical development team of geologists and geophysicists with extensive global exploration experience has been organized. The PetroMed team is particularly skilled in new venture and country evaluations and has proven experience and skills in exploration campaigns and joint venture operations for hydrocarbons around the world," he said. "Our pre-drilling budget for the exploratory process is about $17.2 million through first quarter 2008, at which point PetroMed will be in a 'drill-ready' posture in a world-class offshore turbidite formation," he said. After completing other work programs PetroMed will be awarded the requisite Drilling Licenses for the following 5 to 7 years. Upon successful drilling, Production Certificates will be awarded and in force for 30 to 50 years. "I am confident that the indigenous supply of oil and/or natural gas will completely displace coal now required to be imported for use to generate electricity in Israel."