Oil exploration co Givot shares jump on core finds

The company has continued its drilling at the Meged-5 well.

Shares in oil exploration company Givot Olam Oil Exploration Limited Partnership (TASE:GIVO.L) are rising strongly today, after the company reported progress at its Meged-5 well.

The company said that it had drilled three cores in the Mohila strata, to a depth of 9 meters (about 27 feet) each. Oil was seen in each core, and will be sent for laboratory tests overseas.

Last week, the company's shares soared nearly 230% after reporting that the mud picked up by its Rosh Ha'ayin drill site included "significant quantities" of oil. The company emphasized at the time, and again later that day in a special clarification, that further test need to be conducted, including electric logs, in order to know if the find is commercial.

Leader Capital Markets analyst Yoav Burgan said that although the news is another positive indication, it pays for investors to cool their ardor, since there remain many tests that the company must perform over the next few months.

The company said today that drilling continued as planned, with the hope to reach a depth 4,800 meters.

Givot Olam shares rose 17.2% today.

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