Israel Securities Authority investigators yesterday raided the offices of EZ Energy Ltd. (TASE:EZ), following unusual trading activity in the share over the past week. The company reported the raid to the Tel Aviv Stock Exchange (TASE) today.
The trading activity surrounded reports of the company's move to buy 10% of the "Gal" oil and gas exploration license. "Gal" borders the Leviathan structure.
The company said, "It should be made clear, that according to the information the company has at this time, the company is not under suspicion in the investigation. As of the time of this report, the company has no other information about the investigation."
Last Tuesday, EZ Energy shares soared 145%, without any news. After the close of trading, it reported talks to buy 10% of "Gal". Over the two subsequent days, the share plummeted 48.7%, after the Ministry of National Infrastructures said it will freeze authorizations for purchases and sales of oil and gas licenses.
Yesterday, another firm now in the energy exploration sector, Sefen Industries and Investments Ltd. (TASE: SEFN) , said that ISA investigators had raided its office, and also said that as of the time of the report it was not a suspect in the investigation, as far as it knew.
At this point, it is not known how far along the investigations are. However, the fact that the ISA raided two companies in the oil and gas sector within 24 hours points to the direction the agency is headed: stopping the wave of speculation that has gripped the industry recently.
Published by Globes [online], Israel business news - www.globes-online.com - on September 21, 2010
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