Israel's frilling fever is unabated. A consortium of Zaki Rakib, Ginko Oil Exploration Ltd., Zerah Oil And Gas Explorations LP (TASE: ZRAH), Givot Olam Oil Exploration LP (TASE:GIVO.L), and Houston Drilling Management LLC (HDM) of the US have applied for the Max oil and gas exploration license, previously known as the Hof license, from the Petroleum Supervisor at the Ministry of National Infrastructures.
The Max license is a 400-square kilometer area offshore between Jaffa in the north and the Ashdod Port in the south. The work plan that the consortium filed as part of the license states that it will conduct a marine seismic survey to obtain new seismic strata, and then analyze and compare the results with the existing seismic survey. If the findings confirm the existence of an oil or gas bearing structure, the consortium will drill a diagonal well from onshore to a depth of 1,600 meters offshore.
The license is for two years. The total cost of the work plan is estimated at $13.1 million, including $9.5 million for the well.
HDM is the drilling contractor at the Yam Tethys, Tamar, and Dalit wells, and will own 5% of the Max license. Ginko and Zerah will own 37% each, Rakib will own 15%, and Givot will owns 6%.
This is Rakib's first gas exploration venture.
In a separate development, Ratio Oil Exploration (1992) LP (TASE:RATI.L), EZ Energy Ltd. (TASE:EZ), Israel Opportunity Energy Sources LP, Yeshayahu Landau Holdings (1993) Ltd. (controlled by a Ratio general partner, Yeshayahu Landau), and Eitan Eisenberg Ltd. (another general partner in Ratio, and its geologist) have applied for an offshore oil and gas exploration license for the Dolphin license on the basis of a memorandum of understanding between the parties. The Dolphin license stretches from Jaffa in the north to the Gaza Strip. It borders the Yam Tethys, Med Ashdod, and other licenses.
Ratio will own 60% of the Dolphin license, if granted, and the other partners will own 10% each.
Zerah's share price rose 5.9% by midday to NIS 0.072, giving a market cap of NIS 123 million. Givot's share price rose 4.1% to NIS 0.051, giving a market cap of NIS 474 million. Ratio's share price rose 4.1% to NIS 0.154, giving a market cap of NIS 1.01 billion, and EZ Energy's share price rose 1.4% to NIS 0.071, giving a market cap of NIS 73 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 23, 2010
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