The license operator recommended returning the licenses because of the geological risk and expected difficulty in commercializing any gas that might be found.
Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) notified the Tel Aviv Stock Exchange this morning that the operator of the 391 and 392 licenses ("Daniel East" and "Daniel North") had recommended to the partners, among them Isramco and Modiin Energy LP (TASE:MDIN.L) that they should return all their rights in the licenses to the state.
Isramco's announcement states that the operator's recommendation was based on, among other things, estimates of the geological risks of the prospects identified in the area of the licenses and the difficulties expected in commercializing any gas that might be found, the lack of interest in the licenses on the part of potential new investors, and the fact that it is not possible to extend the work plan for the licenses beyond their expiry date in April 2018.
The board of directors of the general partner in the partnership therefore decided on the return of all the partnership's participation rights in the licenses to the state, and instructed the general partner's management to act accordingly.
Published by Globes [online], Israel business news - www.globes-online.com - on August 20, 2017
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