Energy exploration shares and participation units are falling dramatically after yesterday's announcement by the Ministry of National Infrastructures, led by Minister of National Infrastructures Uzi Landau, that it has decided to halt sales of oil and gas exploration licenses.
Sefen Industries and Investments Ltd. (TASE: SEFN) said today, in a report to the Tel Aviv Stock Exchange (TASE), that apparently its deal to acquire 10% of the Sarit license near Ashdod will not go through, and its shares are down.
Sefen shares are down 43.7% today, after falling 38.1% yesterday.
Just three days ago, Sefen reported that it will buy Moshe Hershberg's stake in the license, and will also grant him options to buy 750,000 shares in Sefen. The share shot up 290% the day before the official announcement, on rumors of a deal.
Another share that is falling is EZ Energy Ltd. (TASE:EZ), which is in talks to buy 10% of the Gal offshore license, bordering on the Leviathan structure. Rumors of the company's entrance into the exploration field drove the share up 145%.
EZ Energy shares are down 20%, after falling 34.7% yesterday.
Securities of other companies in the sector are also faring poorly. Delek Drilling LP (TASE: DEDR.L) participation units are down 1.8%, after falling 3.2% yesterday. Avner Oil and Gas LP (TASE: AVNR.L) participation units are down 1.3%, after falling 0.5% yesterday.
Ratio Oil Exploration (1992) LP (TASE:RATI.L), facing reports of criminal involvement in its operations, is down 7.3%, after falling 8% yesterday.
Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) is off 3.5%, after a drop of 2.1% yesterday.
Published by Globes [online], Israel business news - www.globes-online.com - on September 16, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010