Givot Olam Oil Exploration LP (TASE:GIVO.L) today announced that preliminary results of the production test of section 5 of its Meged 5 well near Rosh Ha'Ayin showed oil mixed with gas in the flow from the section. No water was seen in the bore.
Unassisted oil flow from section was 302 barrels over 19.5 hours. On the basis of expert advice, and in view of the results of natural flow of oil to date in the Meged 5 well, Givot has decided to dismantle the frac and propelling equipment at the well and send it back overseas.
Givot added that it has begun preparations for tests of section 6 of the well.
Givot director Shmuel Laurence Becker told "Globes" that the decision to dismantle the frac equipment was made at the recommendation of the foreign company that is conducting the production tests at Meged 5. The foreign company said that there was natural flow from the well and no need for accelerants.
"Globes": "You're now beginning tests on section 6 out of eight sections of the well. The tests are scheduled to continue through August, but at this rate it appears that you'll complete them sooner.
Becker: "That's what you say. When we complete the tests, we'll send a proper notice to the TASE."
Givot's share price fell 6.8% in morning trading today to NIS 0.11, giving a market cap of NIS 1.19 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on June 16, 2010
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