Oil and gas exploration partnership Givot Olam Oil Exploration Limited Partnership (TASE:GIVO.L) reported to the Tel Aviv Stock Exchange (TASE) this evening the final results of its scientific analysis of tests and electrical logs at its Meged 5 well.
Givot reported, "Final results that were received regarding the cores shows that, in the opinion of the general partner, that the Meged 5 well is the most promising well that was drilled so far in the Meged field by the partnership. In the general partner's estimation, based on details received until now, there is a good chance that the well will end up as a commercially producing well. At the same time, the general partner asks to emphasize that only after production tests will the general partner be able to estimate if the well is commercial."
Givot said that final results about the well will be received within 60 days and that further tests, at a cost of $6 million, are needed - and that the partnership only has $3.75 million left.
Yet the partnership emphasizes that the Meged 5 well, as opposed to earlier drills, appears to have "open cracks" which will allow gas or oil to go through.
The results were reported more than 2 hours after the stock market closed. Trading in Givot's partnership units was halted this afternoon pending the announcement, and did not resume.
Published by Globes [online], Israel business news - www.globes-online.com - on February 21, 2010
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