Ratio Oil Exploration (1992) LP (TASE:RATI.L) has submitted two alternative partnership structures to the Petroleum Supervisor for the offshore Gal permit. Ratio applied for two licenses, Neta and Roy, for the Gal permit.
Under the first proposal, Ratio will own 60% of Gal, ATP Oil & Gas Corporation (Nasdaq: ATPG) of the US will own 40%, 5% directly and 35% through ATP East Med Number 1 BV.
Under the second proposal, Ratio will own 60%, Israel Opportunity Energy Resources LP (TASE: ISOP.L) will own 10%, Modiin Energy LP (TASE:MDIN.L) will own 20%, EZ Energy Ltd. (TASE:EZ) will own 5%, and Norway's AGR Petroleum Services Holdings AS will own 5%.
The Gal permit covers 1,770 square kilometers in deep water 150 kilometers west of Netanya, not far from Leviathan.
Ratio CEO Yigal Landau said, "For the first time, there was competition for the rights between two international offshore operators. We were in talks with both ATP and AGR, but we have no preferences between them. We believe in the potential of the licenses, which is why we kept the maximum proportion of the two licenses, subject to the Petroleum Supervisor's requirement of at least $50 million shareholders' equity per license."
Landau added, "Drilling at Leviathan is not yet over, and we don’t yet know the results of the drilling to the deep target strata, but data in our possession will be an important factor in decisions on Neta and Roy wells."
Ratio owns 15% of Leviathan. It partners are Noble Energy Inc. (NYSE: NBL) and Delek Group Ltd. (TASE: DLEKG).
In April, Ratio raised NIS 260 million, including NIS 60 million from its controlling shareholders, the Landau and Rotlevy families. The company has $100 million cash for its work plan through mid-2012, which includes the Gal permit. A 3D seismic survey has already been carried out on the permit's structure, and it is currently being analyzed.
Ratio's share price rose 3.2% in morning trading to NIS 0.40, giving a market cap of NIS 2.8 billionn.
Published by Globes [online], Israel business news - www.globes-online.com - on August 15, 2011
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