Israel Awards First License to Drill for Oil on Golan

Israel Awards First License to Drill for Oil on Golan

Subsidiary of US-based Genie Energy already developing two oil shale projects.

February 22, 2013
Manufacturing Group

The government of Israel has awarded Genie Israel Oil and Gas Ltd., a subsidiary of New Jersey-based  Genie Energy, an exclusive petroleum exploration license covering 396.5km2 in the Southern Portion of the Golan Heights.

Genie Energy is currently developing two oil shale projects - one in Israel's Shfela Basin and the other in Colorado's Piceance Basin. The company believes, based on its preliminary analysis and interpretation of existing geological data, that the newly issued license area may contain significant quantities of conventional oil and gas in relatively tight formations, the development of which would entail significantly different technical approaches and project timelines than the other projects. Genie Energy intends to conduct an exploration program to further investigate the size and quality of the resource in the new license area.

The company also extended the expiration of its pending exchange offer of up to 7,145,409 shares of Class B Common Stock for shares of Series 2012-A Preferred Stock on a one for one basis. On March 5, 2013, the expiration date, all validly tendered shares of Genie Class B Common Stock not previously withdrawn will be accepted for exchange pursuant to the terms of the exchange offer.

Genie has been advised that 181,802 shares of Class B Common Stock had been tendered for exchange.