Gas reserves off Cyprus are nearly a third less than initially estimated but remain "substantial," the country's energy minister said Thursday, insisting it would proceed with ambitious production plans.

Energy Minister George Lakkotrypis said test data from a confirmation drill by U.S. firm Noble Energy showed the natural gas discovery in Block 12 ranges from 3.6-6 trillion cubic feet, falling short of a Noble estimate in 2011 of 5-8 trillion cubic feet.

Mr. Lakkotrypis insisted, however, that the assessment "confirms there are substantial deposits of natural gas with significant possibilities of production."

"Every half a trillion cubic feet of natural gas represents 25 years of power supply for the Cyprus electricity authority," he said.

He said the results wouldn't deter the government from going ahead with building a liquified natural gas (LNG) plant for its offshore gas, as there are other blocks to be exploited.

A second appraisal well will meanwhile be required to specify the quantity in Block 12.

The almost bankrupt Mediterranean island is hoping its untapped offshore energy resources can pull it back from the financial brink after a banking meltdown earlier this year that prompted an EU-IMF bailout.

Cyprus is hoping to commercially export its gas, and maybe oil, by 2020. Based on a preliminary assessment of reserves by Noble, the government expects a profit of $12-18 billion over a 14-year period, Mr. Lakkotrypis said.
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