Modiin Energy LP (TASE:MDIN.L) today notified the Tel Aviv Stock Exchange (TASE) that it had decided to buy oil and gas drilling rights in the North Sea off the UK coast. The announcement did not disclose the price, scope of the drilling, or the oil/gas reserves. The market welcomed the announcement, sending the Modiin share price northward by more than 5%.
Modiin announced that it would acquire one quarter of the rights. The drilling operator will retain the remaining rights and continue to perform the drilling. The deal still requires due diligence of the partnership and the signing of an operational agreement with the seller.
Modiin is controlled by Yitzhak Sultan and IDB Development Corporation Ltd. (TASE:IDBD). Last week, the partnership published its strategic plan, saying that it intended to focus on development of its current licenses and the purchase of rights in drilling sites having little of the risk that is driving large players away from the sector.
In addition to licenses not in Israeli waters, the partnership owns 10% of the Shimshon site, 15% of the Daniel site, and 15% of the West Daniel site. According to reports by the partnership to the TASE, its tests show gas potential totaling 8 TCF in the Daniel reservoir and 0.185 TCF in the Shimshon reservoir. The partnership reported that it would have to conduct more drilling in order to reach the gas reservoirs.
Published by Globes [online], Israel Business News - www.globes-online.com - on January 22, 2017
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