The Meged field has a best estimate of 7.8 million barrels of oil in proven reserves and 15.8 million barrels of contingent reserves.
Givot Olam Oil Exploration LP (TASE:GIVO.L) has signed a contract with a European drilling company to drill two wells at the Meged field near Rosh Ha'Ayin to oil and natural gas bearing target strata at a depth of 5,000 meters. Drilling of the first well will begin in November, and the second is scheduled for six months later.
Givot said that it has the wherewithal for the drilling of at least one well, and that it would seek to secure the necessary financing for drilling the second well.
Last week, Givot announced that the Meged field has a best estimate of 7.8 million barrels of oil in proven reserves and 15.8 million barrels of contingent reserves, according to a report by Netherland Sewell & Associates Ltd. (NSAI) from May 2012. The estimates are well below the best estimate of 10.5 million barrels of oil in proven reserves and 59.9 million barrels of contingent reserves, made by RDS in July 2011.
Givot's share price rose 2.3% in morning trading to NIS 0.045, giving a market cap of NIS 473 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 7, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012