Givot Olam’s Meged #5 Produces Oil

May 31, 2010 by  

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Givot Olam's Meged 5 Wellsite

May 31, 2010
Givot Olam Oil Exploration LP (TASE:GIVO.L) announced plans to frac (pumping special fluids into the well bore to create enough pressure to crack or fracture a target formation within the well) section 1 of the Meged 5 well near Rosh Ha’Ayin, Israel, in order to stimulate oil production. Company officials stated that the necessary equipment and team were already in Israel, and that it had begun the preliminary activity for the procedure.

On May 27 Givot announced that the production test in Section 1 of its Meged 5 well yielded 33 barrels of liquid over eight hours, without the aid of accelerants.

The previous week Givot released a detailed report for the production tests, including the timetable. The tests will be conducted in eight sections of the well over 60-80 days. Givot has promised to issue a detailed report on the number of barrels of oil flowing at each section and the length of time of the flow, but cautioned that no conclusion could be drawn from these figures and implored investors to wait for the conclusion of the tests.

Givot said, “The partnership wishes to reiterate that data of these kinds do not reflect the rate of flow from the well or its viability, which will only be determined after completion of the tests by the experts who will process and analyze the date obtained from each of the tests, which will be disclosed in separate immediate notices.”

Givot has apparently learned the lesson of the Zerah Oil And Gas Explorations LP (TASE: ZRAH) at its Tamrur Cliff 4 well. A gas flare from the well caused investors to rush to buy the share, sending it skyrocketing. The share later crashed on disappointing production tests results. Givot is seeking to avoid a similar experience.
Excerpted (with editing) from: http://www.globes.co.il/serveen/globes/docview.asp?did=1000563138&fid=1725 and http://www.globes.co.il/serveen/globes/docview.asp?did=1000562385&fid=1725.

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Comments

3 Responses to “Givot Olam’s Meged #5 Produces Oil”

  1. dean staples on June 1st, 2010 5:53 pm

    If Givot Olam is able to make their #5 well a commercial success, this should add great value to ZION PPS. Remember what happened to ZION PPS when Noble announced their big discovery?? I do! Rosh Haayin is about 20 to 25 miles directly due SOUTH of ZIONS Maanit #2. Time will tell. I believe the times we are living in in human history will dictate one of these companies tieing into the LEVANT BASIN wealth! GO ZION GO! The times and the fullness of time. Let us also not forget the prophecy of Genesis 49 which talks about where the BLESSINGS are to be found. ON JOSEPHS HEAD!

  2. Dr. Simcha Baker on June 2nd, 2010 5:36 am

    Any oil is better than no oil. 33 barrels on an 8-hour test means 99 barrels/day. A commercial economic success needs at least 500 barrels of oil a day of production. If you are talking about a billion barrel oil field, you need an IP IInitial Production) of 5000 barrels/day/well or more. As I said, ‘any oil is better than no oil’, but…

  3. admin on June 18th, 2010 12:50 pm

    Read the article closer. It says 33 barrels of
    liquid

    , not oil. I think water mixed with distillates – still not what we’re looking for.

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