The price of participation units in Ratio Petroleum (TASE:RTPT) jumped by more than 30% on the Tel Aviv Stock Exchange this morning, after the partnership reported that US energy giant ExxonMobil had decided to carry out an exploratory drilling in the Kaieteur Block in the economic zone of Guyana in Latin America.
Ratio holds 25% of the rights in the block. ExxonMobil, the block operator, holds 35%. 15% are owned by Hess Corp., while a local partner holds 25%.
ExxonMobil decided on an exploratory drilling in the 13,535 square kilometer block after analysis of the seismic survey carried out on 40% of the block area. The drilling will be made in the southern part of the block, close to the Stabroek Block in which there have already been 12 discoveries amounting to more than 5 billion barrels of oil.
Hess Corp. has notified ExxonMobil that it will participate in financing the drilling. Ratio now has 90 days in which to decide whether it will participate in the drilling in line with its percentage holding in the rights, or whether it rights will be diluted.
Over the past two years, ExxonMobil has carried out a huge 3-D seismic survey covering some 5,700 square kilometers (an area equivalent to more than 14 maritime licenses in Israel). The US Geological Survey rates the Guyana-Suriname basin second in the world for prospective potential among basins in the initial stages of exploration, and puts its potential at 13.6 billion barrels of oil and 32 TCF of natural gas.
"This is a most significant announcement for Ratio Petroleum," says Ratio Petroleum geologist Eitan Eizenberg. "In 2012, I filed our application for rights in the Kaieteur Block, in the belief that the Guyana-Suriname basin would become productive. Since then, 12 oil fields have been discovered in the neighboring block. The discoveries increase the chances of finding oil in the Kaieteur Block."
Ratio Petroleum became listed on the Tel Aviv Stock Exchange in early 2017. It currently has a market cap of NIS 260 million following a 135% rise in the price of its participation units. The partnership is controlled by the Landau family (40% of the general partner), the Rotlevy family (40%), Eitan Eizenberg (10%), Shibolet Trustees (5%) and Adv. Orit Marom Albec. The CEO is Itay Tabibzada Raphael
Ratio Petroleum holds rights in oil and gas exploration licenses in Guyana and Malta. It is in the process of obtaining exploration rights in the Philippines, Suriname, and an additional area in Guyana, and holds an option on an exploration license in Ireland.
Published by Globes, Israel business news - en.globes.co.il - on February 17, 2019
© Copyright of Globes Publisher Itonut (1983) Ltd. 2019
Published by Globes, Israel business news - en.globes.co.il - on February 17, 2019
© Copyright of Globes Publisher Itonut (1983) Ltd. 2019