With the resumption of the drilling of the Yam 3 well in the offshore Shemen license, licensee Shemen Oil and Gas Resources Ltd. (TASE: SOG) has filed a draft prospectus to raise up to a gross NIS 43 million ($12 million) today. The company's controlling shareholders - Israel Financial Levers Ltd. (TASE:LVR), controlled by Avraham Nanikashvili, Jackie Ben-Zaken, and Bonstar International Ltd. - have promised to buy at least $4 million worth of shares.
Shemen Oil will offer 43 million shares, in units of 10,000 shares each, at NIS 0.10 per share (NIS 1,000 per unit). The company's share price fell 1% in morning trading to NIS 0.101, giving a market cap of NIS 340 million.
Earlier this week, Shemen Oil announced the resumption of the drilling of the Yam 3 well, after it had been suspended due to high pressure in the borehole. The delay and the new engineering route to the oil-bearing target strata raised the estimated cost of the well to $138 million.
Shemen Oil owns 84.2% of the Shemen exploratory license, Zerah Oil And Gas Explorations LP (TASE: ZRAH) owns 7.5%, Zmiha Investment House Ltd. (TASE: TZMI) owns 3.34%, and well operator, Azerbaijan's Caspian Drilling Company Ltd. owns 5%.
Published by Globes [online], Israel business news - www.globes-online.com - on May 22, 2013
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