Givot Olam Oil Exploration LP (TASE:GIVO.L) today reported manufacture of the necessary part needed for the Meged 5 well has been completed and the part is now undergoing pressure tests before it will be taken to site and installed.
Givot added that long-term production tests will begin in June, and will continue through September. When they are completed, the company will prepare the well and equipment for commercial production, which it expects to begin by the end of the year.
Givot said that, as part of its effort to obtain the best price for the oil, it plans to rent, for an initial period of two years, an oil storage tank, from which it will be possible to delivery oil to Oil Refineries Ltd. (TASE:ORL) in Haifa and Paz Ashdod Refinery Ltd. and other potential buyers via pipelines. Delivering oil by pipeline rather than by tankers will enable Givot to get a higher price for the oil and enable sales to additional customers.
Givot's share price rose 1.6% in early trading today to NIS 0.065, giving a market cap of NIS 676 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 28, 2011
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