here read
The Company has also been actively working in Israel. The Company has found that
in the area in Israel licensed to the Company by the Israeli Government for
performing oil & gas exploration there are prospects of extractable oil. The Company
has been working with several groups of geologists in order to try to develop an
assessment on this matter. The interim reports have provided very optimistic results,
describing the likelihood of about 26 million barrels of extractable oil. Further
geological analysis are being performed. The reports have also addressed the possible
presence of extractable natural gas at relatively shallow depths. The Company has
entered into an agreement in principle with Lapidoth Ltd., an Israeli exploration
company, for performing the first perforations in the licensed area. For this
agreement to become a contract there is still need to define all the perforation
parameters (spot, depth, etc), the price to be paid and other details for the performance
of the activities. The agreement shall no longer be in place if the parameters in the
agreement are not properly defined until the end of November 2010, and in such case
there will be need to define a new agreement. On the basis of the interim report the
Company is considering either an eventual public offering in Israel of Energtek
Products Ltd., the subsidiary owning the license or a transaction with a company
presently listed in the Tel Aviv Stock Exchange. In addition, the Company is closely
following the developments in Israel regarding the future gas-bulk transportation,
following the big amounts of gas discovered off-shore Israel, expected to be delivered
in Israel within approximately two years.
