Zerah Oil And Gas Explorations LP (TASE: ZRAH) controlling shareholder Yehezkel Calif is the reason why the partnership's share is falling on the Tel Aviv Stock Exchange (TASE) despite apparent good news from the company. Calif has been selling Zerah shares and like the executive at Ratio Oil Exploration (1992) LP (TASE:RATI.L) did last December, it sent the share tumbling.
Investors are not pleased when a party at interest sells shares while the company announces the purchases of new licenses, seismic studies at current licenses, and even production tests at its well in Dead Sea area. The investors view the sale as a no-confidence vote in the company.
Calif sold 65 million Zerah partnership units yesterday at NIS 0.13 per unit, and 15 million units at NIS 0.1225 per unit, for a total sale of NIS 10.3 million. He also bought a negligible 13,000 units at NIS 0.129 per unit for NIS 1,677. The result was a net 35% reduction in his holding in Zerah from 16.82% to about 11%.
Zerah owns half of the Tamrur Cliff (Tzuk Tamrur) 4 oil well north of the Dead Sea, where production tests are due to begin shortly. On the basis of a seismic survey, Zerah estimates the site's reservoir at 6.6 million barrels of oil. Delek Group Ltd. (TASE: DLEKG) units Delek Drilling LP (TASE: DEDR.L) and Avner Oil and Gas LP (TASE: AVNR.L) own the other half of the well holding.
Zerah's share fell 3.4% by mid-afternoon today to NIS 0.113, giving a market cap of NIS 220 million.
Published by Globes [online], Israel business news - www.globes-online.com - on February 11, 2010
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