Givot Olam Oil Exploration LP push to production without reservoir report or stable production rates.
In the face of serious climate change, Israel’s Petroleum Law (1952) encourages haste where oil is concerned. We’ve seen it at Adullam, where IEI plans to rake up the earth for oil shale, and now we’re getting another taste of it just outside of Tel Aviv. Givot Olam Oil Exploration LP has discovered oil near Rosh Ha’Ayin, and plan to begin assembly of production facilities by August 15, 2010.
According to a recent Globes report, “Givot Olam Oil Exploration LP (TASE:GIVO.L) announced at the close of trading yesterday that there were commercial quantities of oil at its Meged 5 well, and that the partnership intended to prepare for production at the well.”
This despite the fact that the partnership has not yet announced the total size of the reservoir, which details will be released 15 August, nor do they have a secure estimate of how much oil will be produced at the site.
This is a commercial well that is worthwhile to go into production, but it won’t turn us into Saudi Arabia. Givot did not state the total size of the reservoir as it’s waiting for the engineering report. I predict sales of shares tomorrow, because the market expected a flow of 500-600 barrels a day. The numbers are close to expectations, but there’s no indication of the total size of the reservoir, and that’s problematic.
[image via aturkus]