Israel Land Development Company (TASE: ILDC) chairman Ofer Nimrodi has set up a new company that will handle the company's oil and gas exploration business, Israel Land Energy Ltd. ILD will own 70% of the company, the Mochkin Group, owned by brothers Levi and Mendel Mochkin will own 20%, and Moshe Herszberg will own 10%.
Israel Land Energy's main asset will be its Sarah and Mira gas exploration license rights, which are currently registered to PetroMed Corporation. The companies yesterday finalized the sale of the leases for $16 million after several weeks of negotiations. During these talks, Nimrodi was able to retain the majority of the rights with Israel Land Energy.
Under the agreement, Israel Land Energy will own half of the Sarah and Mira gas exploration licenses, Modiin Energy LP (TASE:MDIN.L) will own 33%, and Canada's Bontan Inc. (Bulletin Board: BNTNF), which owns 75% of PetroMed, will own the rest.
Published by Globes [online], Israel business news - www.globes-online.com - on March 25, 2010
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