Givot Olam Oil Exploration Limited Partnership (TASE:GIVO.L), which last month said that it had found "significant quantities" of oil in the "Meged 5" oil drill near Rosh Ha'ayin today announced the preliminary results of an electric log test that it had conducted. With the publication of the tests, trade was halted in Givot. With trading renewed, the units have jumped 16%.

The company's report said, "An initial examination of the electric logs shows an oil structure over 600 meters in length in which about 50-100 meters is the potential area for production."

The report also added qualifications. It said, "Givat Olam continues to analyze the information from the electric logs. The partnership wishes to stress that only after collecting all the data from the all the required operations, including completing the analysis of the electric logs information, checking the core results and examining production and processing, can the partnership formulate an evaluation on the question of whether we are talking about commercial production from the Meged 5 well."

Today's report follows a stormy meeting yesterday of Givot's investors in which the investors rejected a proposed public offering in order to raise capital. The meeting was very turbulent and Givot's chief geologist Tuvia Luskin, who managed the presentation, walked out of the meeting.

Leader Capital Markets analyst Yoav Burgen said, "This is not the report that investors are waiting for. That awaited report will be about the full findings of the electric log tests, and then we will receive a picture regarding the situation of the quality and size of the oil well. Until we receive those findings we need to wait patiently and curb our enthusiasm."

Published by Globes [online], Israel business news - www.globes-online.com - on January 18, 2010

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