Parent Of Retail Supplier Discontinuing Oil E&P Business
December 28, 2020 Email This Story Copyright 2010-20 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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Genie Energy Ltd. disclosed today that operations at its only active project under its Genie Oil and Gas (GOGAS) segment are ceasing, and that the results of operations related to GOGAS will be treated as discontinued operations when reporting fourth quarter results.
Specifically, Genie Energy Ltd. stated in an 8-K that, "In December 2020, Afek Oil & Gas Ltd., the oil and gas exploration project in the Golan Heights in Northern Israel ('Afek') of Genie Energy Ltd. (the 'Registrant'), completed the final planned testing on one of its completed exploratory wells. As previously disclosed, that test was conducted as prior analysis indicated that a zone within the well potentially contained evidence of hydrocarbons at levels sufficient to warrant additional testing. After analyzing the results of the test and subsequent activity, as no traces of light oil were found, Afek began to shut down its operations. Afek is in the process of cleaning the wells in accordance with regulatory requirements and expects that operations will fully cease on or about December 31, 2020. As Afek represented the only remaining active project under the Genie Oil and Gas (GOGAS) segment, the Registrant’s fourth quarter of 2020 results of operations related to GOGAS and by extension, Afek, will be treated as discontinued operations."
Genie Energy Ltd.'s other businesses include various competitive retail energy suppliers under Genie Retail Energy (as well as an international retail supplier segment), a broker/consultant, and a solar business.