Nicosia, December 2012 - Cyprus President, Demetris Christofias, has announced that exploratory drilling carried out by Huston-based, Noble Energy in block 12 of the island’s Exclusive Economic Zone revealed a gross mean average of 7 trillion cubic feet (TCF) of natural gas, describing the discovery as “a historic development.”

“The discovery of natural gas in our EEZ creates big prospects for Cyprus and our people which we will utilize collectively and seriously in favour of the public interest,” Christofias stressed, adding that this discovery ”creates prospects for long-term economic growth from which both the current and the future generation will benefit.”

He went on to say that apart from the investments as a consequence from the gradual creation of the necessary infrastructure for the use of natural gas, there has been interest from foreign investors to operate in Cyprus.

“New auspicious financial prospects are opening for the future of the island. Cyprus is entering the energy map of Europe with prospects of substantive contribution to the European Union’s energy security,” he added.

The President also said that prospects are opening on the geostrategic and political field as well, as “the discovery of natural gas could and should constitute a tool for the promotion of peace and cooperation in the region.”

Following the President’s annoucement, Cyprus Minister of Commerce and Industry, Praxoulla Antoniadou, said that the methane gas reserves in Block 12 were estimated to be worth around €100 billion.

The Cyprus A-1 well encountered approximately 310 feet of net natural gas pay in multiple high-quality Miocene sand intervals. The discovery well was drilled to a depth of 19,225 feet in water depth of about 5,540 feet. Results from drilling, formation logs and initial evaluation work indicate an estimated gross resource range of 5 to 8 TCF, with a gross mean of 7 TCF.

The Cyprus Block 12 field covers approximately 40 square miles and will require additional appraisal drilling prior to development. There are another 14 blocks within the Cyprus AEZ up for grabs with the next bidding process for some of them commencing at the end of January 2012.

In its own statement, issued simultaneously with President Christofias, Noble Energy said it was “excited” by the find, which it described as “significant”.

Charles D. Davidson, Noble's Chairman and CEO, said, "We are excited to announce the discovery of significant natural gas resources in Cyprus on Block 12. This is the fifth consecutive natural gas field discovery for Noble Energy and our partners in the greater Levant basin, with total gross mean resources for the five discoveries currently estimated to be over 33 TCF.”

He went on to say that “this latest discovery in Cyprus further highlights the quality and significance of this world-class basin."

President Demetris Christofias announcing the find live on television