Givot Olam Oil Exploration LP (TASE:GIVO.L) today announced that the "formation liquid" in the section 6 of the Meged 5 well near Rosh Ha'Ayin contained oil and gas, but no water.
Givot added that preliminary tests of the output found that the gas-oil ratio in section 6 was higher than in the previous sections of the bore tested. The company is working to obtain a sample at a depth of the bore in section 6 to send to a foreign laboratory to test the exact composition of the oil and gas and to test the precise gas-oil ratio.
On Thursday, Givot's announcement that "formation liquid" was found in section of the well disappointed the market. There had been rumors in the market about large quantities of natural gas in the upper sections of the bore, which were not confirmed by the announcement, and the share tumbled 23%.
Although in today's announcement Givot did not quantify the amount of gas found in section 6, it said that the information obtained could affect the company's next steps for the production tests.
Givot's share price rose 8.2% in morning trading to NIS 0.092, giving a market cap of NIS 846 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 27, 2010
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