The share price of Globe Exploration LP (TASE: GLEX.L) rose 8% to NIS 0.23, giving a market cap of NIS 25 million, by midday today, after announcing that it had the money to begin drilling the Ofek 2 well.
In a terse notice to the TASE, Globe Exploration said, "In response to numerous queries from investors to the partnership, the partnership wishes to clarify that, as of today, it has the financial means to carry out the drilling of the Ofek 2 well through the production tests stage, in accordance with the budget approved by the general partner's board of directors. The general partner has no plans to raise additional capital through an offer of new securities before the start of drilling. Bringing partners into the licenses held by the partnership is also under consideration."
The Ofek 2 well is targeting natural gas bearing strata at a depth of 6,000 meters. The company's resources report estimates the well's potential at 0.6 trillion cubic meters of hydrocarbons with a 30% probability of success.
Globe Exploration, founded in 2009, owns the onshore Ofek license near Lod in central Israel, and the Bar-Or and Yahel licenses in the north.
Published by Globes [online], Israel business news - www.globes-online.com - on January 8, 2013
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