Parent Plans to Accelerate Growth of Its Retail Energy Provider Business

Genie Energy Ltd. announced that, as the result of an analysis of an exploratory well in its drilling business and an attendant suspension of such exploratory activity, the company, "plans to sharpen its strategic focus on its retail energy supply business."

Genie Energy is the ultimate parent of IDT Energy, Inc. and several other retail energy brands and companies

Afek, the subsidiary of Genie Energy Ltd. conducting an oil and gas exploratory program in Northern Israel, announced that preliminary analysis of results from its completed Ness 10 exploratory well in Northern Israel suggests that the well's target zone does not contain commercially producible quantities of oil or natural gas.

Afek continues to analyze the data from Ness 10 in the context of the results of its prior drilling and other activities, and has suspended oil and gas drilling operations in the interim. The Company will make decisions about future operations when it has a more complete picture of the results and analysis.

"While we continue to study the data from Ness 10, we are looking forward to pursuing the abundant opportunities on the retail side of our business," said Michael Stein, CEO of Genie Energy.

"Since Genie Energy's inception, Genie Retail Energy has accounted for all of our revenue and gross profit. The enhanced focus on retail will provide Genie Energy with increased flexibility to make strategic investments to accelerate the growth of our energy provider business both here in the US and in deregulated markets overseas," Stein said

Genie Energy noted that it recently announced a joint venture to expand operations to the U.K. (see story here), and gained a foothold in the commercial energy marketplace through the acquisition of Mirabito Natural Gas, a Florida-based commercial natural gas supplier (see story here).

"In Israel, our nascent drilling subsidiary, Atid, continues to enjoy strong interest from prospective clients for contracted drilling services following the successful completion of a water well last year. Since Atid already owns its drilling rig, Genie's investment in that business is expected to be modest until we reach profitability," Stein added.