Ratio Oil calms jittery investors

The share recovered part of yesterday's selloff, which was driven by reports of insider sales.

Ratio Oil Exploration Ltd. (TASE:RATI.L) shares are up 22%, after yesterday's plummet of 41%.

Ratio tried to calm investor fears today, and posted a notice with the Tel Aviv Stock Exchange (TASE) saying that despite share sales by parties at interest, the company has no information regarding the results of critical seismological surveys being conducted for its Leviathan exploration project.

The company added, "Neither the general partner, nor salaried workers and parties at interest, who continue to hold 27% of the units, have any significant information regarding the extraordinary trading volume or the reason for it."

Yesterday, it became known that senior executives and the company itself sold 179 million shares and sold securities worth NIS 43.3 million. That followed a 1,000% gain in the share price in 2009.

Ratio CEO Yigal Landau told "Globes" that he had not sold his personal holdings. When asked if investors should worry that the company's chief geologist sold all his holdings, Landau said, "If I was an ordinary investor, I would also think the same thing. Apparently he had his personal reasons."

Ratio owns 15% of Ratio-Yam (Leviathan) which is not far from the Tamar concession ownd by Delek Group Ltd. (TASE: DLEKG) units and Noble Energy.

The seismic survey results are expected in the second quarter of 2010, and if they indicate natural gas, drilling is expected to begin at the end of 2010.

Published by Globes [online], Israel business news - www.globes-online.com - on December 30, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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