17th Feb 2020 11:54
(Alliance News) - Primorus Investments PLC said Monday its investee SOA Energy UK Ltd and its joint venture partner Israeli oil & gas firm Delek Oil has agreed on the drilling programme and budget for the Ofek well, located near Lod in Israel.
The AIM-listed investment firm said an" agreement reached in principle" with the rig supplier and the contract is now being formalised. The proposed rig is already in the country, and is expected to arrive on site in early April, the company noted.
Drilling of the Ofek well is expected to commence during May and will take approximately 40 days. Extended testing will follow thereafter, which will take another 40 days, the company said.
The company also said SOA "continues to evaluate new opportunities in both onshore and offshore Israel, as well as across the greater Eastern Mediterranean region."
The company is pursuing a listing on AIM and is targeting to complete the process by the fourth quarter of 2020, Primorus said.
Alastair Clayton, executive director, said: "We are thrilled that the programme to unlock value at the Ofek oil discovery is finally coming to fruition."
"We await news of the well spud and drilling and testing progress as it unfolds. This sets the stage for what we believe will be a successful and keenly sought IPO towards the back end of 2020," Clayton said.
Primorus shares were trading 0.5% higher in London at 3.12 pence each on Monday.
By Loreta Juodagalvyte; [email protected]
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