At the request of the Israel Securities Authority, Givot Olam Oil Exploration LP (TASE:GIVO.L) today disclosed additional information about production at the Meged 5 well. Yesterday, the company said that it will produce 800 barrels a day from section 8b of the well during the long-term production tests and commercial production.
Although Givot said in today's announcement that "to the best of its understanding, the announcement of June 22, 2011 was sufficient", it agreed to the Security Authority's demand for more information, including specifics about its long-term production tests plan.
Givot said that the productions tests are due to be completed in October, a month later than in earlier announcements, and that commercial production is scheduled to begin in November. The production tests' budget is $500,000, all of which will be born by the company.
As for the production rate of 800 barrels a day, Givot said that that this was in line with the production rate in March, and that despite the short measurement period of the production, there was no reason to doubt its reliability and there were no grounds of concern that it might mislead a reasonable investor.
Givot's share price was unchanged in early trading at NIS 0.066, giving a market cap of NIS 697 million, after falling 4.4% yesterday.
Published by Globes [online], Israel business news - www.globes-online.com - on June 23, 2011
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