Sources inform ''Globes'' that Modiin Energy LP (TASE:MDIN.L), controlled by Yitzhak Sultan and Nochi Dankner through their joint venture IDB DT Energy (2010) Ltd., is in advanced talks to buy licenses owned by Pelagic Exploration Company that are adjacent to the Leviathan prospect, for an estimated $20 million.
Dankner and Sultan are in talks with New York businessman Prentiss Tomlinson, who recently bought Pelagic Exploration from its previous owners. Sultan reportedly wants partners to acquire Pelagic, in order finance the deal and spread the risk. Until recently, most of Israel's oil and gas exploration companies were competing to buy Pelagic's licenses.
Pelagic owns the Aditya, Aila, Lela, Yahav, and Yoav, which it bought in March 2009. Their aggregate area accounts for 10% of the total area of Israel's offshore licenses. No seismic surveys have been published on the licenses, but they are considered interesting because of their proximity between the Leviathan structure to east and Cyprus's Block 12 structure to the west. Substantial quantities of natural gas have been found in both of these structures.
Pelagic's licenses are considered the last areas for oil and gas exploration, after almost all the licenses held by Israeli companies have already been explored in the past couple of years.
Published by Globes [online], Israel business news - www.globes-online.com - on August 30, 2010
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