Energy explorer Modiin buys oil license stake

Company acquires 10% of the offshore Daniel license from Isramco Ltd. for $400,000.

By ADI BEN-ISRAEL
October 22, 2010 00:03
1 minute read.
Energy explorer Modiin buys oil license stake

oil pipes 298. (photo credit: Associated Press)

 
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Modiin Energy LP (TASE:MDIN.L) has acquired 10% of the offshore Daniel license from Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) for $400,000, reflecting a value of $4 million for the license. The deal comes just ahead of the publication of a 3D seismic survey of the license area.

Last month, Isramco announced signs of several possible prospects for drilling in the Daniel license. The 3D seismic survey’s results are apparently positive.

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Isramco has owned the Daniel license since March 2009. The license expired in September 2010, and the company asked the Petroleum Supervisor for two licenses, each of 400 square kilometers.

In the next stage, Isramco will have to submit to Petroleum Supervisor Dr. Yaakov Mimran the processed data of the survey, in accordance with the previously approved timetable.

The Daniel license is located offshore from Israel’s southern coast, with the Shimshon license bordering it on three sides. Isramco is a partner in the Tamar license.

Modiin’s share price was unchanged in trading on Thursday morning at NIS 0.067, giving a market cap of NIS 1.08 billion. Isramco’s share price rose 0.6% on the TASE to NIS 0.55, giving a market cap of NIS 5.89 billion.

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