Israel Land Development Company Energy Ltd. (TASE: IE), controlled by Ofer Nimrodi, today closed the sale of 7.6% of the offshore Myra and Sarah to Modiin Energy LP (TASE:MDIN.L), controlled by Nochi Dankner and Tzahi Sultan, for $30.5 million. ILDC Energy will transfer the proceeds directly to the drilling operator to finance its share of the exploratory wells at the licenses.
The companies announced the deal in late October.
Last week, the Myra and Sarah partners approved the $157 million drilling of the Myra 1 and Myra 2 exploratory wells. The companies expect results from the well during the second quarter. GeoGlobal Resources Inc. (AMEX: GGR) unit GeoGlobal Resources (India) Inc. is the well operator. The Homer Ferrington rig, owned by Noble Corporation (NYSE: NC) is due to drill the two wells. The Myra and Sarah licenses have together 6.5 trillion cubic feet of natural gas, with a 54% chance of geologic success, and 150 million barrels of oil, with an 18% chance of geologic success, according to an analysis of the 3D survey by Netherland Sewell & Associates Ltd. (NSAI).
Following the sale, ILDC Energy and its affiliates own 46.6% of the Myra and Sarah licenses, Modiin Energy owns 29.2%, IDB Development Corp. Ltd. owns 5.6%, Israel Petroleum Company Inc. (IPC) owns 13.6%, and well operator GeoGlobal Resources Inc. (AMEX: GGR) unit
Modiin Energy's share price fell 2% to NIS 0.397, giving a market cap of NIS 760 million, and ILDC Energy's share price fell 1.6% to NIS 0.94, giving a market cap of NIS 800 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 14, 2011
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