Partners begin drilling off Ashdod coast

The drilling at the Sarit license is expected to last three months.

The Sarit license partners - Lapidoth Heletz LP. (TASE: LPHL), Modiin Energy LP (TASE:MDIN.L), Ratio Oil Exploration (1992) LP (TASE:RATI.L), and Israel Opportunity Energy Sources LP - this morning began drilling the Ashdod 3 well in the license area. The partners expect the drilling to take three months and cost $2.5 million.

Lapidoth Heletz owns 57.5% of the Sarit license, Modi'in Energy owns 22.5%, Ratio owns 10%, and Israel Opportunity Energy Sources LP, owned by Ronny Halman and Uri Aldubi, owns 10%.

The Sarit license is offshore from Ashdod. The work plan for the well, detailed in Lapidoth Heletz's financial report for 2009, calls for a diagonal bore from the previously abandoned Ashdod 3 well in the direction of an oil reservoir discovered in Jurassic strata at the Ashdod 2 and Ashdod 5 wells.

Lapidoth Heletz's share price rose 4.6% in morning trading to NIS 0.248, giving a market cap of NIS 261 million, Modi'in Energy's share price rose 5.7% NIS 0.037, giving a market cap of NIS 526 million, and Ratio's share price rose 1.3% to NIS 0.231, giving a market cap of NIS 1.56 million

Published by Globes [online], Israel business news - www.globes-online.com - on June 27, 2010

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

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