Modiin Energy LP (TASE:MDIN.L) and Israel Land Development Company Energy Ltd. (TASE: IE) have signed a letter of intent with an offshore drilling rig operator, who is a leading player in the field, and are in negotiations on a final contract to drill at the Myra and Sarah licenses.
The companies added that Petroleum Supervisor Dr. Yaakov Mimran notified them that, in view of these negotiations, the deadline to sign a contract with the drilling contractor has been postponed until April 30. The companies expect to begin drilling the first exploratory well in December 2011.
ILDC Energy CEO Ohad Marani said, "The company is making progress in accordance with its plans to begin exploratory drilling at the Sarah and Myra licenses by the end of 2011."
Modiin Energy's share price fell 2% in early trading to NIS 0.048, giving a market cap of NIS 824 million, and ILDC Energy's share price fell 1.1% to NIS 0.775, giving a market cap of NIS 641 million
Published by Globes [online], Israel business news - www.globes-online.com - on April 3, 2011
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