Givot Olam Oil Exploration Limited Partnership (TASE:GIVO.L) today notified the Tel Aviv Stock Exchange (TASE) that on the basis of preliminary electrical tests (logs) by a British laboratory at the Meged 5 well near Rosh Ha'Ayin found positive signs of oil the partnership has decided to carry out production tests at four segments.
Last week, Givot Olam reported that preliminary logs (which test the strata features and liquids found in them) found "a plume of oil of over 600 meters, 50-100 meters of which are potential for production". Today, the company said, "This 600-meter plume has four of the segments of with high penetration rates characterized by open natural fractures. These permeable zones are accompanied by thin strata with strings of matrix porosity of 5-9%.
"These figures imply large quantities of oil and gas, which were measured during the drilling of these segments. These four segments were selected for the carrying out of production tests as having the potential for production. When the processing and analysis of the logs and cores are completed, a number of additional segments where tests will be worthwhile is likely."
Givot Olam's share rose 15.1% by early afternoon to NIS 0.08, giving a market cap of NIS 470 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 25, 2010
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