The ownership structure of the Gal permit is becoming clearer. Israel Opportunity Energy Resources LP (TASE: ISOP.L) notified the Tel Aviv Stock Exchange (TASE) this morning that it signed an agreement of principle at the end of last week with Ratio Oil Exploration (1992) LP (TASE:RATI.L) to become a partner in the Neta and Roy permits, which are located within the Gal license. This comes in the wake of Italy's Edison International SpA (NYSE: EIX) joining the Gal permit last month as a partner and even though Ratio recently announced that it had cancelled its options agreement with Israel Opportunity.
The notification stated that Israel Opportunity, Edison and Ratio have made a new request to the Petroleum Supervisor at the Ministry of Energy and Water Resources to receive the two permits.
Under the terms of the agreement in principle, Ratio confirmed that it is selling 10% of the rights of the Gal permit. Under the new ownership structure Ratio will hold 70% of Gal, Edison will hold 20% (subject to raising its holdings as agreed with Ratio) and Israel Opportunity will hold a 10% stake.
It was also agreed that by December 13 2012, Israel Opportunity will obtain approval from the Israel Antitrust Authority to join the Gal permit.
Israel Opportunity CEO Eyal Shuker said, "We are happy to be part of submitting the request to receive the licenses within the area of Gal and see this as part of fulfilling the company's strategy of building an oil and gas exploration portfolio in Israel's economic waters."
Published by Globes [online], Israel business news - www.globes-online.com - on December 2, 2012
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