Sources inform "Globes" that Ma'ariv Holdings Ltd. (TASE: MARV) chairman Ofer Nimrodi is negotiating to buy the Israel Petroleum Company (IPC), also known as PetroMed. PetroMed owns 95.5% of the gas exploration licenses Mira and Sara.
Recent preliminary surveys have shown that the two licenses have potential gas output worth billions of dollars.
Canadian energy giant Bontan bought a 75% stake in PetroMed last November, and thus owns a 71.625% in the two licenses. According to estimates based on an evaluation report prepared by Chapman Petroleum Engineering Ltd., the Mira prospect has 3.03-5.45 trillion cubic feet of gas, with the best estimate of 4.24 trillion cubic feet. The Sara prospect has 1.05-1.89 trillion cubic feet of gas, with a best estimate of 1.47 trillion cubic feet.
According to Chapman, the present value of gas in the Mira prospect is $2.54-5.37 billion, with $3.96 billion as the most likely amount. The value of gas in the Mira prospect is $1.02-2.17 billion, with $1.59 billion as the most likely amount. The probable value of the gas at the two prospects is $5.55 billion.
A central point of the talks is dealing with PetroMed's debt, estimated at $20 million.
Investment house DS-Apex (TASE:DSIN) is working on the financial backing for the acquisition.
If a deal is reached, it will need the authorization of the Petroleum Board, though energy market sources do not see a problem, due to the financial strength of the potential buyers.
The Sara and Mira licenses, each one 400 square kilometers, are located 40 kilometers off the coast of Hadera. They are located south-southwest of the Dalit gas reserve, which contains about 14.2 billion cubic meters of natural gas.
Published by Globes [online], Israel business news - www.globes-online.com - on March 9, 2010
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