Friday, December 16, 2011

Bethel Finance: Givot extends Meged 5 oil sale contract

www.bethelfinance.com

Bethel Finance news:
Givot Olam Oil Exploration LP (TASE:GIVO.L) has signed a new contract for the sale of oil produced at its Meged 5 well near Rosh Ha'Ayin through the end of 2012 at a price based on the European benchmark. The actual price will depend on the type and quality of oil produced, less a discount of a few percent.

Givot's first contract, signed on June, was for six months. The price was based on the global price of $95 per barrel, about the same as the current price.

In the notice to the TASE, Givot said that if the quality and type of oil are inconsistent with the samples provided before the contract was signed, the parties would review the contract. Givot said that it believes that the oil that will be produced will be the same in quality to oil produced to date.

Givot's share price fell 3.3% today to NIS 0.058, giving a market cap of NIS 613 million.

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