Givot reports 594 barrels of oil

A small amount of water was drawn from the bottom of the well bore.

Givot Olam Oil Exploration LP (TASE:GIVO.L) today announced the preliminary results of the test at section 4 of its Meged 5 well near Rosh Ha'Ayin: unassisted flow was 594 barrels of oil over 49.5 hours.

No water was seen in the oil. The test found indications of a small amount of water at the bottom of the well bore, and 1.2 liters of water were pumped and sent to the laboratory for analysis.

After completing further fracing operations, Givot intends to carry out a test on the second part of section 4 as well as in other sections that have not been tested to date.

It also plans to carry out a test on section 5 of the well.

Givot reiterated these kinds of figures do not reflect the production rate from the well or its viability, which will only be determined when the tests are completed and analyzed. The partnership will announced these results when they are ready.

Givot's share price rose 0.9% by midday to NIS 0.111, giving a market cap of NIS 1.11 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on June 14, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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