Zerah Oil And Gas Explorations LP (TASE: ZRAH) and its parent company Ginko Oil Exploration Ltd. today announced that they will begin a 3D seismic survey of the offshore Gulliver preliminary permit next month. The survey will take one week, and the analysis of the results will be published three months later.
The 3D seismic survey will cover a 67-square kilometer area and cost about $850,000. Gulliver is close to shore between Haifa and Tel Aviv.
Three targets have been identified for further study by seismic survey. The survey was originally planned for mid-2011, but was brought forward when Ginko was able to take advantage the completion of the seismic survey of a license by Adira Energy Israel Ltd. to survey Gulliver. This also lowered the cost of the survey by eliminating the need to bring the survey ship from its home port in the UK.
The 3D seismic survey will cover an area for which there are no seismic surveys, which previously could not be conducted so close to shore.
Ginko, a private company, is in talks to conduct a reverse merger with stock market shell Simcha Urieli & Sons Engineering & Construction Co, Ltd. (TASE: UREL). The companies signed a letter of intent on December 21, under which Urieli will allot 90% of its shares to Ginko. Ginko wants to become a public company in order to raise capital to finance its oil and gas exploration.
Zerah's share price rose 1.6% by midday today to NIS 0.063, giving a market cap of NIS 102 million.
Published by Globes [online], Israel business news - www.globes-online.com - on December 28, 2010
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