The oil and gas exploration sector is at the center of trading on the Tel Aviv Stock Exchange (TASE) this morning, after Shemen Oil and Gas Resources Ltd. (TASE: SOG) announced after the market closed yesterday that the Yam 3 well was a dry hole. The well's partners invested $175 million in it.
In a conference call, Shemen Oil chairman Gabi Ashkenazi expressed disappointment, and CEO Yossi Levy said that there were no plans at this time to conduct production tests for natural gas. The announcement affected other oil and gas exploration stocks, such as Modiin Energy LP (TASE:MDIN.L) and Israel Opportunity Energy Resources LP (TASE: ISOP.L).
By midday, Shemen Oil fell 89.6%, Modiin Energy fell 41.1%, and Israel Opportunity fell 9.7%.
Israel Corporation (TASE: ILCO) fell 0.4%, but subsidiary Oil Refineries Ltd. (TASE:ORL) rose 1.6%, following reports that it will fire 240 employees, 16% of its workforce. In 2007-10, Oil Refineries' parent companies, Israel Corp. and Israel Petrochemical Enterprises Ltd. (TASE:PTCH) withdrew NIS 1 billion in dividends from the company.
Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) fell 0.7%, after workers committees at its Israeli plants announced yesterday that they will fight the layoffs announced by the company.
Published by Globes [online], Israel business news - www.globes-online.com - on October 14, 2013
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