Modiin Energy LP (TASE:MDIN.L), a partner in the Myra and Sara offshore licenses, said that yesterday's announcement by its partner in the license, Israel Petroleum Company (IPC), concerning the preliminary results of the 3D seismic survey was made without its "knowledge or consent".
In a notice to the TASE, Modiin Energy said that, as it previously reported, the 3D seismic survey of the licenses was conducted in 2009, and that a preliminary processing of the raw data from the survey was carried out by Western Geco, the company that conducted the survey. An analysis by Modiin's consultants found that it was premature to conclude the presence of reserves at the licenses or their size.
Modiin Energy added that all the partners in the licenses had decided that an international company specializing in the field would carry out preliminary processing of the data. This preliminary processing and the final conclusions will only be ready in a few months.
Yesterday, IPC announced that preliminary findings of the 3D seismic survey of the Myra and Sara licenses indicate the presences of a total of about 5.71 trillion cubic feet of natural gas, justifying the drilling of an exploratory well.
Modiin Energy's share price rose to NIS 0.058 at the opening on the TASE today, before falling back to NIS 0.05 by mid-afternoon, a gain of 16.3%, giving a market cap of almost NIS 700 million.
Published by Globes [online], Israel business news - www.globes-online.com - on September 5, 2010
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