Ratio Oil Exploration (1992) LP (TASE:RATI.L) has bought 10% of the rights to the offshore Sarit oil and gas exploration from Lapidoth Heletz LP. (TASE: LPHL) for $160,000, plus VAT. Following the deal Ratio will own 25% of the license, Lapidoth Heletz will own 52.5%, and Modiin Energy LP (TASE:MDIN.L) will own 22.5%. The Sarit license is offshore from Ashdod.
Half the payment will go toward reimbursing Lapidoth Heletz for past expenditures on the license.
The Oil Supervisor at the Ministry of National Infrastructures has to approve the deal.
Ratio and Lapidoth Heletz also amended their joint operating agreement for the Sarit license, so that now the operating committee will try to reach unanimous decisions. The Sarit license work plan includes drilling an angled well, the Ashdod 3 well, followed by the Ratio 5 well. Alternatively, only the Ratio 5 will be drilled. The two companies will try to get Modiin Energy's consent to these changes.
Ratio's share price rose 5.3% in morning trading today to NIS 0.138, giving a market cap of NIS 900 million. Lapidoth Heletz's share price rose 1.9% to NIS 0.107, giving a market cap of NIS 116 million.
Published by Globes [online], Israel business news - www.globes-online.com - on March 1, 2010
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