Modiin Energy calls urgent meeting to OK Sarit acquisition

The oil exploration partnership bought an additional 7.5% of the offshore license from Lapidoth Heletz.

Oil exploration partnership Modiin Energy LP (TASE:MDIN.L) yesterday signed another agreement to buy an additional 7.5% of the Sarit offshore license from Lapidoth Heletz LP. (TASE: LPHL) for $120,000. The 148-square kilometer Sarit license is located offshore from Ashdod.

In November 2009, Modiin Energy bought 15% of the Sarit license, and this purchase will boost its stake to 22.5%. Ratio Oil Exploration Ltd. (TASE:RATI.L) bought 15% of the license in January 2007. The latest sale reduces Lapidoth Heletz's share in the license to 62.5%.

Modiin Energy added that it will convene an urgent shareholders meeting on February 4 to approve the purchase. The deadline for eligibility to participate in the meeting is Sunday, January 31. In addition to approving the purchase, the shareholders will be asked to approve the partnership's acquisition of 70% of the Gabriella offshore license from Canada's Adira Energy Corporation (XETRA: AORLB8; Bulletin Board: AMGOF) subsidiary Adira Energy Israel Ltd., which Modiin announced on Tuesday.

Modiin Energy's partnership unit rose 6.1% in morning trading today to NIS 0.035, giving a market cap of NIS 200 million. Modiin Energy has jumped 613.5% in the first four weeks of the 2010. Lapidoth Heletz's partnership unit fell 1% to NIS 0.20, giving a market cap of NIS 233 million.

Published by Globes [online], Israel business news - www.globes-online.com - on January 28, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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