Isramco's share of the wells' proven reserves total 2.7 million barrels of oil and 14 billion cubic feet of natural gas.
Naphtha Israel Petroleum Corp. (TASE: NFTA) subsidiary Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) has acquired working interests in 490 oil and gas leases in the US for $102 million from a US company and a limited partnership that includes General Electric Co. (NYSE: GE). The leases are mostly located in Texas, Oklahoma, and New Mexico, and include 590 producing wells.
Isramco says that its share of the wells' proven reserves total 2.7 million barrels of oil and 14 billion cubic feet of natural gas. The company expects $22 million net revenue from the wells in 2008.
The company will finance most of the purchase with loans. Naphtha will provide a $24 million owner's loan, and a Canadian has promised a four-year $54 million loan at LIBOR + 2%, plus $4 million in working capital, against a lien on the wells.
Naphtha owns 48% of Isramco through JOEL Jerusalem Oil Exploration Ltd. (TASE: JOEL).
Published by Globes [online], Israel business news - www.globes-online.com - on February 17, 2008
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