ATP East Med Number has signed an agreement giving Moncrief Oil International an option to buy its 35% stakes in the licenses.
ATP Oil & Gas Corporation (Bulletin Board: ATPAQ) subsidiary ATP East Med Number 1 BV has signed an agreement giving Moncrief Oil International Inc. a 90-day option to buy its working interests in properties located in the Mediterranean Sea. ATP East Med owns 35% of the Shimshon and East and West Daniel oil and gas exploration licenses, and ATP directly owns an additional 5%. Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) and its affiliates owns 50% of the Shimshon license and 60% of the Daniel licenses, and Modiin Energy LP (TASE:MDIN.L) owns 10% of the Shimshon license.
If Moncrief exercises its option, it will pay ATP East Med an amount equal to all its expenses in the natural gas licenses. ATP East Med will use part of the proceeds to repay creditors.
Moncrief has the right to terminate the option agreement with no penalty if it concludes that investment is not sound technically or commercially, or it is unlikely to receive necessary approvals from the other working interest owners or the Israeli Ministry of Energy and Water Resources. ATP East Med may terminate the option agreement at any time without penalty if an Israeli court issues an order requiring that all or any part of the interests be sold to another party.
Published by Globes [online], Israel business news - www.globes-online.com - on September 27, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012