Ratio Oil Exploration (1992) LP (TASE:RATI.L), which owns 15% of the Leviathan lease, posted zero revenue for the second quarter of 2010, compared with NIS 516,000 revenue for the corresponding quarter of 2009.
The partnership's oil and gas exploration costs ballooned 2,024% to NIS 3.69 million for the second quarter from NIS 174,000 for the corresponding quarter, apparently because of Leviathan.
Ratio's net loss after accounting for market adjustments, soared to NIS 4.6 million (NIS 0.0016 per unit) for the second quarter from NIS 710,000 for the corresponding quarter. The company attributed the loss to a NIS 5.5 million loss on investments in securities and its higher oil and gas exploration costs.
Leviathan partner Noble Energy Inc. (NYSE: NBL) said in its conference call following the publication of its financial report for the second quarter, that it will begin drilling at Leviathan in October. Alluding to this comment, Ratio said in its financial report that Noble Energy has not yet notified the company about the details of the well. "Noble Energy has not yet prepared its final plan for the well, and therefore it has not presented to its partners the plan or budget for it," stated Ratio.
Noble Energy and Ratio's partners in Leviathan are Delek Group Ltd. (TASE: DLEKG) units Delek Energy Systems Ltd. (TASE: DEOL) and Avner Oil and Gas LP (TASE: AVNR.L).
Ratio's share price has risen 30% in the past month and 164% since the start of 2010. Its share price rose 1.2% today to NIS 0.34, giving a market cap of NIS 2.3 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on August 22, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010