Sarah, Myra hopes boost license-holders' shares

Results are about to be published for the fields, which have an estimated 4.77 trillion cubic feet of gas, with a 43% of geological chance of success.

Shares in the Myra and Sarah offshore Israeli license-holders are jumping today - Israel Land Development Company Energy Ltd. (TASE: IE), Modiin Energy LP (TASE:MDIN.L), Premium (PIH) Holdings Ltd. (TASE: PIH), and Shaldieli Ltd. (TASE: SHDL-M) - in expectation that the companies are about to publish the results of the analysis of the 3D seismic survey of the structures conducted by Netherland Sewell & Associates Ltd. (NSAI). NSAI will also report on the geologic probability of gas and oil in the licenses.

In December 2010, Chapman Petroleum Engineering Ltd. estimated that Myra and Sarah's natural gas reserves at 6 trillion cubic feet, but later reduced the estimate 4.77 trillion cubic feet of gas with a 43% of geological chance of success. For the sake of comparison, Tamar has an estimated 8 trillion cubic feet and Leviathan has 16 trillion cubic feet.

Ofer Nimrodi-controlled ILDC Energy owns 52% of Myra and Sarah. Its share price rose 6.4% by mid-afternoon to NIS 1.66, giving a market cap of NIS 1.31 billion. The share price has risen over 50% so far this month and 150% since mid-March.

Modiin Energy, controlled by Nochi Dankner and Tzahi Sultan, owns 19% of Myra and Sarah. Its share price rose 1.8% to NIS 0.058, giving a market cap of NIS 980 million. The share price has risen over 28% so far this month.

PIH, controlled by Yuli Ofer and Nimrod Rinot, owns 5.6% owns 5.6% of Myra and Sarah. Its share price rose 4.9% to NIS 1.26, giving a market cap of NIS 67 million. The share price has risen over 33% since mid-June.

Shaldieli Ltd. (TASE: SHDL-M) will own 5.6% of Myra and Sarah following its merger with Israel Petroleum Company Inc. (IPC). Its share price rose 15.4% to NIS 1.48, giving a market cap of NIS 16 million. The share price has risen over 28% so far this month.

Myra and Sarah's drilling operator GeoGlobal Resources Inc. (AMEX: GGR) of Canada, owns 10% of the licenses.

Published by Globes [online], Israel business news - www.globes-online.com - on June 28, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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