"There is no breakdown in the well, and the drilling is going according to plan. We are progressing as planned, and we intend to complete the well in the first week of September. I see no justification or logical reason for this rollercoaster," Modiin Energy LP (TASE:MDIN.L) CEO Ron Maor told "Globes" today in response to the plunge in the company's share price on rumors of another breakdown in the Myra 1 well.
The share price of Modiin Energy fell 7% by mid-afternoon today to NIS 0.187, and the share price of it partner Israel Land Development Company Energy Ltd. (TASE: IE) fell 5.2% to NIS 0.362. ILDC Energy owns 43.6% of Myra and Sarah through subsidiaries Emanuel Energy Ltd. and Emanuel Energy Oil and Gas Exploration LP, Modiin Energy owns 29.2%, IPC Oil and Gas Holdings Ltd. (IPC) (TASE: IPC) owns 13.6%, and well operator GeoGlobal Resources Inc. (AMEX: GGR) owns 5%.
"Globes": Maybe there are concerns that the cost of the drilling will continue to rise.
Maor: "There could be all kinds of concerns. But, like I said, as of now, we stand behind what we've reported. At the moment, the plan is exactly as we've reported."
What do you expect next?
"If the well shows signs of gas or oil, which will happen around the first week of September, we'll go for production tests. The rig's next target is to go directly to drill the Sarah well."
So, bottom line, you say there is no justification for the plunge in the share price.
"Correct. The market sometimes has its own interpretations, but there is nothing new on our part or any negative developments. Everything is going according to plan."
In a separate development ILDC Energy CEO Ohad Marani bought 230,000 shares at NIS 0.345 per share, for a total of NIS 80,000.
Published by Globes [online], Israel business news - www.globes-online.com - on August 21, 2012
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