The oil will be sold at the prevailing global price, which is currently at around $95 per barrel.
Givot Olam Oil Exploration LP (TASE:GIVO.L) today announced that it has signed a new, six-month agreement for the sale of crude oil produced by the Meged 5 well. The oil will be sold at the prevailing global price, which is currently at around $95 per barrel. The company did not disclose the name of the buyer, citing confidentially and privacy.
The announcement comes a day after the company announced that it is preparing for production tests at the well, which will begin within two weeks.
Until now, Givot has sold oil from Meged 5 to Oil Refineries Ltd. (TASE:ORL) at $50-60 per barrel.
Givot's share price rose 4.6% in morning trading to NIS 0.069, giving a market cap of NIS 698 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 16, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011
Hillel Koren and Globes' correspondent