Investors in Givot Olam Oil Exploration LP (TASE:GIVO.L) are in high suspense. The oil exploration partnership announced today that it had received the final engineering report on the production potential of the "Meged 5" drilling, but that it needed a few days to analyze the information before reporting on it.
The immediate reaction to Givot's announcement was an 8% drop in the price of its partnership units on the Tel Aviv Stock Exchange, on a huge turnover of NIS 25 million.
Givot received a first draft of the engineering report on August 15, and then too it announced that it needed a few days to analyze it. The draft report runs to hundreds of pages, and Givot has not published it in its entirety, but only its analysis
Last month, Givot reported receiving a draft engineering report, and said it would make a further announcement within three days, which it did. The draft stated that there were 1.5 billion barrels of oil in Meged 5, but the main unknowns are the retrievable quantity, the rate of production, the cost of production, and so forth. Givot estimates that there is a good chance of a retrievable quantity of 10% of the reserve.
Published by Globes [online], Israel business news - www.globes-online.com - on September 15, 2010
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