Published on November 25, 2012
According to an article published by Globes, Ratio reports that it has signed an agreement with the Italian company Edison to farm in to the “Gal” permit. The two companies, Ratio and Edison, intend to apply for two licenses in the approved exploration area to replace the previous applications that were submitted.
In practice, Edison will serve as operator of the licenses and will hold approximately 20% of the working interest. Upon the completion of the transaction, Edison will pay the full proportionate share (20%) of past expenses incurred (even if it not actually paid) by Ratio in connection with operations carried out under the “Gal” permit.
Ratio CEO Yigal Landau explained that Edison’s entry into the Israeli market is very good news, because the Israeli economy is desperate for the entry of international players. He noted that he welcomed the joint venture with Edison, adding that “so far Ratio has benefited from an excellent and highly skilled operator, Noble Energy, and it was important for us to preserve this level of professionalism to ensure exploration and production activity of the highest order level.”
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