If Ratio finds a new operator, it will receive an additional 5% of the rights.
Leviathan partner Ratio Oil Exploration (1992) LP (TASE:RATI.L) has acquired 20% of the Myra and Sarah offshore licenses. It will receive the relative proportionate stakes from the licensees Modiin Energy LP (TASE:MDIN.L), Israel Land Development Company Energy Ltd. (TASE: IE) and IDB Development Corporation, plus the relative proportion of the rights held by the well operator, GeoGlobal Resources Inc. (Bulletin Board: GGGR). The transfer of the rights will not be subject to super royalties.
Following the acquisition, Modiin Energy owns 23.1% of the Myra and Sarah licenses, IDB Development owns 4.4%, ILD Energy owns 41.6% through Emanuelle Energy Ltd. and Emanuelle Oil and Gas LP, and its parent company Israel Land Development Company(TASE: ILDC) owns 5%, IPC Oil and Gas Holdings Ltd. (IPC) (TASE: IPC) owns 10.7%, and GGR owns 5%. IPC and GGR did not sell rights in the licenses as part of the deal with Ratio.
The licensees will seek a new well operator to replace GGR, and the new operator will receive 25% of the rights to the two licenses. If Ratio finds the new operator, it will receive an additional 5% of the rights.
If a commercial discovery is made at Myra and Sarah, Ratio will pay the other licensees 10% of the oil or gas sales up to $12.3 million.
Ratio has undertaken to review, at its own expense, the various finds at the two wells within 29 days of signing the deal.
In late 2012, both the Myra and Sarah wells were declared dry holes, after the licensees spent $100 million drilling the wells and conducting tests.
Published by Globes [online], Israel business news – www.globes-online.com