Rumors of foreign investor boost Givot Olam shares

Foreign financial investor is in contact with Givot, according to rumors, but no information on who the investor is.

oil great 88 248 (photo credit: )
oil great 88 248
(photo credit: )
The share price of Givot Olam Oil Exploration LP rose 4.4 percent to NIS 0.071 on the Tel Aviv Stock Exchange Sunday afternoon, giving a market cap of NIS 693 million on unsubstantiated rumors that a foreign financial investor might invest in the partnership, which owns the Meged 5 well near Rosh Ha’ayin.
A foreign financial investor is in contact with Givot about an investment, according to the rumors. There is no substantive information about who the investor is, the nature of the investment (such as an allotment of partnership units to raise capital, acquisition of stake in the general partner, or a loan), or the amount of the investment.
A Givot spokesman said various parties were interested in investing in the company, but he disclosed no details. He said when the company had something to report, it would do so via a notice to the TASE.
Givot has less than NIS 30 million in cash, and it needs tens of millions of shekels to develop the Meged 5 well, including the upcoming production tests on sections 7 and 8 of the bore. Assuming that the production tests are positive, Givot plans to begin production at the well. It also wants to drill more development wells, but needs money to do so.
There is nothing new about foreign financial investors in Israel’s energy industry, but it always came after unequivocal proof of a commercial discovery and detailed production and financial plans by the companies owning the rights to the discovery.