Globe Exploration LP (TASE: GLEX.L) today announced that no oil was found in the secondary target strata of its exploratory Ofek 2 well, at near Lod. The share price fell 15.3% on the news to NIS 0.02, giving a market cap of NIS 45 million.
Last month, Globe Exploration announced that it Ofek 1 well was a dry hole.
The Ofek 2 well's secondary target was Triassic strata at a depth of 4,450-4,600 meters. Even if oil exists in the strata, their porousness and conductivity are very low and do not allow natural flow. The company therefore decided not to conduct production tests at the well, as originally planned.
Globe Exploration said that it would continue drilling to the main target strata at a depth of 5,465 meters. It added that the lack of oil in the secondary strata has no bearing on the geologic analysis of the primary strata.
Published by Globes [online], Israel business news - www.globes-online.com - on March 14, 2012
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