Canadian Value Investor: ATP Heading to Israel ?

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Thursday, December 23, 2010

ATP Heading to Israel ?

http://www.globes.co.il/serveen/globes/docview.asp?did=1000610779&fid=1725

Another US energy company is considering joining Noble Energy Inc. (NYSE: NBL) in Israel's oil and gas exploration industry. Sources inform ''Globes'' that executives of ATP Oil & Gas Corporation (Nasdaq: ATPG), which has a market cap of $820 million, visited Israel in recent days and met with developers and owners of offshore leases, as well as with Petroleum Supervisor Dr. Yaakov Mimran.

The sources added that ATP is considering becoming a major partner in the Myra and Sara offshore licenses, or in the Daniel license and Shimshon permit owned by Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L). In contrast to the Myra and Sara license operator, GeoGlobal Resources (India) Ltd., which owns 5% of the licenses, ATP wants to own a large stake in them - up to 50% - in the same way that Noble Energy is the largest shareholder in Tamar, Leviathan and the Mari B (Yam Tethys) licenses.

During meetings with government officials, the ATP executives expressed concern about the Sheshinski committee's pending final recommendations. "They said that if the recommendations were not changed, they would reconsider coming to Israel. They asked to appear before the committee to say this to its members," said a source in contact with the executives.