Ratio Oil Exploration (1992) LP (TASE:RATI.L) and Israel Opportunity Energy Sources LP (TASE: ISOP.L) today notified the TASE that Petroleum Supervisor Yosef Mimram has approved their request to change the work plan for the Gal permit. Instead of conducting a 2D seismic survey at a cost of $4 million, they will conduct a 3D seismic survey on a 400-square kilometer area at a cost of $5 million.
The 3D seismic survey is scheduled to begin before the end of the year.
Ratio owns 90% of the Gal license, and Israel Opportunity, a newly founded partnership headed by investment bankers Halman and Aldubi, owns 10%.
Ratio is also got a boost from institutional investors ahead of the financial report by Noble Energy Inc. (NYSE: NBL), its partner in the offshore Leviathan licenses together with Delek Drilling LP (TASE: DEDR.L) and Avner Oil and Gas LP (TASE: AVNR.L). The companies reportedly plan to start drilling the Leviathan well in September.
Noble Energy's financial report, issued before trading opened in New York, did not say anything new about Leviathan, and investors are waiting for the conference call.
A top market trader told "Globes", "People are hoping to hear something about a shorter timetable for Leviathan. Institutions have already bought into Ratio in a big way. It's included on the Tel Aviv 75 Index, and people are looking at its partner -Yitzhak Tshuva's Delek Group - which is a serious partner. Tshuva recently increased his stake in Avner and Delek Drilling, buying units for more than NIS 135 million, which a vote of confidence."
Noble Energy CEO Charles Davidson will arrive in Israel on Monday for a three-day visit. He is due to meet top government officials, including Minister of Finance Yuval Steinitz and Minister of National Infrastructures Uzi Landau. Issues on Davidson's agenda include the Tamar well, royalties on gas sales, and construction of the gas terminal for Tamar.
Ratio's share price rose 1.9% by mid-afternoon to NIS 0.269, giving a market cap of NIS 1.8 billion. Israel Opportunity's share price fell 1.2% to NIS 0.16, giving a market cap of NIS 93 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 29, 2010
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