Givot Olam Oil Exploration LP (TASE:GIVO.L) today announced that unassisted flow at section 6 of the Meged 5 well near Rosh Ha'Ayin amounted to 82 barrels of "formation liquid" over 13 hours. The Meged 5 well has eight sections.
The liquid may be all water, oil, or a combination of oil with water or gas. A flow of 220 barrels is needed to know the composition of the liquid. Givot said that, based on the previous tests at section 5, it expects the flow at section 6 to contain oil.
Following the announcement Givot's share price fell 23.2% in morning trading to NIS 0.086, cutting NIS 260 million from its market cap to NIS 870 million.
Givot began the test at section 6 a week ago, and it is now begun preparations for tests at section 7.
Published by Globes [online], Israel business news - www.globes-online.com - on June 24, 2010
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