Interest is reviving in the Sara and Myra drilling licenses. The partners in the offshore licenses report this morning that they have signed an agreement with Cyprus-based Energean E&P Holdings Ltd., whereby the latter will become a partner in the licenses and their operator.
Energean is part of a Greek energy exploration group, focusing on the Mediterranean Sea and North Africa, with activity in Greece and Egypt. It is the sole operator of oil and gas fields in Greece, and has an energy exploration joint venture with US company Ocean Rig, which specializes in exploration in very deep water.
The Myra and Sara partners will transfer 25% of the rights in of the licenses to Energean, each in accordance with the size of its stake, with the addition of an extra portion to take into account the rights of GeoGlobal Resources (India) Inc., which is not a party to the agreement. Ratio Oil Exploration (1992) LP (TASE:RATI.L), which was responsible for finding Energean and introducing it to the partners, will receive additional rights amounting to 5% from the other partners.
Assuming the agreement is closed, the rights of the partners in the Sara and Myra licenses will be as follows: ILDC Energy (through Emanuelle Energy) 17.1%; Israel Land Development 5%; Modiin Energy LP (TASE:MDIN.L) 13.838%; IDB Development 2.655%; IPC Oil and Gas Holdings 6.447%; GeoGlobal 5%; Ratio 25%; and Energean 25%.
In September 2012, the partners in the Myra license announced that no substantial signs of gas had been found in the target strata. In October that same year, they announced similar failure at Sara. The partners later reported that NSAI, which had estimated the resources in the licenses, had reviewed the results of the drillings and determined that the estimate of prospective gas and oil resources in the licenses was unchanged.
Published by Globes [online], Israel business news - www.globes-online.com - on June 8, 2014
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