Gas and oil exploration fever continues to affect investors on the Tel Aviv Stock Exchange. Today it was the turn of Sefen Industries and Investments Ltd. (TASE:SEFN), whose share price more than tripled.

Trading in the company's shares was suspended before Sefen announced it planned embarking on gas and oil exploration activities and is negotiating for 10% of the Sarit license. The Sarit license is for onshore exploration in Ashdod owned by Lapidoth Israel Oil Prospectors Corporation Ltd. (TASE: LAPD), Ratio Oil Exploration Ltd. (TASE:RATI.L) and Modiin Energy Limited Partnership (TASE:MDIN.L). Yuli Gas Exploration owned by the Ofer family is also negotiating to buy 10% of the Sarit license.

Prior to the suspension, Sefen's share price was up 209.5% to NIS 2.60. After trading resumed the share ended up 288% on the day to NIS 3.30.

Sefen is a stock market shell controlled by CEO Moran Sternleib, Yehonatan Kay and chairman Aharon Cohen. In July, there were reports that a group led by Aharon Cohen and Moshe Hirschberg were in talks to buy six gas and oil exploration licenses in deep waters near the Leviathan field. The licenses concerned were Ishai, Aditya, Aila, Lela, Yahav, and Yoad, which were sold in March 2009 to Pelagic Exploration, owned by US investors. The licenses expire in February 2012 and Pelagic is struggling to finance the required 3D seismic survey, which must be carried out by the end of 2010.

The Pelagic held licenses are considered valuable because the latest 3D seismic surveys found that the adjacent Leviathan field has a 50% chance of having double the amount of natural gas reserves than there are in the Tamar field.

Published by Globes, Israel business news - www.globes-online.com - on September 13, 2010

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