Israeli businessman in new oil exploration business
Israeli businessman Teddy Sagi, the main shareholder in the publicly listed online gambling group Playtech plc, is now on the IPO trail for another of his enterprises, oil exploration firm Genesis Energy (Israel) Limited, founded 18 months ago and owning several offshore oil and natural gas exploration licenses.
Sagi, who owns 40 percent of Genesis Energy through family trusts, plans to raise between $90 and 120 million through a listing on the London stock exchange for Genesis, which owns 42.5 percent of the Pelagic licenses.
In order to help the company organise the IPO, scheduled for the fourth quarter of 2012, they hired the services of investment bank Canaccord Genuit.
Having not yet set a valuation for the offering, Genesis Energy may decide to continue financing its share of two exploratory oil wells at the Pelagic licenses over the next 12 months from independent resources, if it cannot hold the IPO at the value it wants.
Genesis Energy's partners in the Pelagic licenses are companies owned by Beny Steinmetz with 42.5 percent stake, Israel Opportunity Energy Resources LP with 10 percent, and Norway's AGR Group In. with 5 percent.
The first well drilling at the Pelagic licenses is due to begin by the end of 2012, and the licensees have already hired the Homer Ferrington rig, currently drilling the Myra 1 well, soon followed by the Sarah well. Drilling of the second Pelagic well is due in 2013. The cost is $200 million, with Genesis Energy share of $85 million.