The regulator has told Givat Olam it will lose its holding, if production work is not performed within 60 days.
Givot Olam Oil Exploration LP (TASE:GIVO.L) is about to lose its holding in the Meged oil field near Rosh Ha'ayin. The company received a letter yesterday from the Ministry of National Infrastructures, Energy and Water Resources Petroleum Supervisor saying, "Following failure to carry out the required work plan in the holding where you are working, I am warning you about cancellation in the holding where you are working."
The Supervisor also writes that according to the work plan, the partnership was required to conduct production tests in the Meged 6 drilling in January 2016 and that, "if this damage is not righted within 60 days from the date of this letter, the holding in the work will be cancelled without any further notification."
Givot said in response that, "it is calling an emergency meeting of the partnership's board of directors to discuss the significance of the letter and the options facing the partnership."
The Supervisor already warned Givot three months ago that it was not developing the Meged field with "appropriate diligence" while Givot responded that, "it intended continuing to promote a solution to the problem of lost pressure in the Meged 6 wellin order to implement production tests in the well and develop the Megev field for the benefit of the partnership's owners and the State of Israel."