Givot Olam Oil Exploration LP (EM) (GOOXF)

Not to be confrontational, but my understanding is Givot Olam general partnership operated a well at a loss for 4 years, using limited partnership money, so the generals could collect royalties, which have to be paid regardless of profit or loss on an operating well. As needed, the generals loaned money back to the limited(s), so the limited partnership could keep paying to keep the well, operating at a loss, open and the generals would keep making the royalties off an operating well. This arrangement is truly evil, but apparently legal. It ended 4 years later when the limited(s) ran out of money, while the generals pocketed the royalties, and the generals could no longer attract new investors into the limited partnership.
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Obviously, the limited partnership is now in the hole in terms of debt, to the general partnership The lesson is, if entering a partnership agreement, you do not want to be the limited partner, you want to be the general partner.

Eventually, the general partnership tried to attract new investment. No one wanted the limited partnership shares since they knew they were worthless. So they offered shares in the general partnership. This almost worked, since the general partnership has value, but ultimately the new (General Partnership) investors backed out.

Incidentally, the IPO price in 1993 was about $10 US (40 shekels) for 100 share partnership unit (1 partnership unit). The partnership unit trades on the TSE in shekels, the shares trade on the pinks in the US, with 1 partnership unit equaling 100 shares. Since 1993, there have been two 10 to 1 reverse splits, which means old numbers compared to new number have a factor of 100 difference in them. So in todays dollars, the IPO in dollars was, 1 share was $10, now worth 25 cents, and 1 partnership unit, 100 shares, now worth 162 shekels (originally 4000 shekels). That's a loss of about, oh, say 96%.

Now, if you buy US shares (GOOXF), you are paying about a 55% arbitrage fee, US shares/US dollars to Israeli limited partnership units/shekels. My guess is most don't know what they are investing in when they buy GOOXF, so the arbitrage fee they are truly paying isn't realized, until they try to sell and find there is a 50% spread between bid and asked.

I don't think anyone is buying GOOXF, the limited partnership shares, these days. But I guess people are willing to trade anything as GIVO-L.TA is still actively traded, no idea why.

Givot Olam does have value, they have a real petroleum field on their hands, that perhaps could support 40 commercial wells or more. They also have the worst management imaginable, making the company, as a whole, pretty much worthless. They will NEVER pay a dividend, but you might be able to ride the GIVO-L.TA limited partnership up and down with public sentiment, as I don't really think investors in GIVO-L.TA have the foggiest clue what they have bought.

Investors should at least understand the returns are capped by the partnership agreement, after Givot Olam has paid back a certain percentage of what they borrowed from the limited partnership, the limited partnership IS DISSOLVED, ie, at the very best, you get X number of dividend checks, then the stock goes away. I used to know what the trigger price was, but I no longer recall it. It has traded at least one time above the trigger price that I know of.

I haven't seen much about Givot Olam in the past several years, you might want to check their website to see if they bothered updating it. If it hasn't been updated in a half dozen years or so, I'd recommend you stay clear of this. Their only strength is their name and an investing public that doesn't know exactly what they are buying.

When Givot Olam was actively trading, and I researched the above, it was just flat out unbelievable, especially when it traded greater than it's maximum legal lifetime payout requirement. So I don't expect anyone reading this to believe it, either. Please do not believe me, rather: Check their website, be sure to look at the date on the website, and realize no documentation has been posted on the website for years, then you make you own choice.

And yes, I have read the partnership agreement, have you? IF you can still get a copy, read it before you invest.

Still banned on the other Israel Oil Board..

With all the excitement going on I thought I would post this:

NOTE: I am using 300 million shares, todays share price, & todays Oil Price.

GOOXF is @ .23 cents now. I bought 2M shares @ sub pennies back in 2005. I got impatient (lol) and sold all along the way @ 1 or 2 cents. I sold way to early. Lessons learned. Here’s hoping that Givot Olam finds massive amounts of Oil and Natural Gas.

Well things just got interesting, check Zion Oil.

Givot was there, found the oil...and yet they are really no more for all intensive purposes.

The story continues....


Good Day.

Good morning gents!

Glad I found you guys. I’m encouraged by where we are in this journey.
It’s been fascinating to watch how the markets work, and how in this case,
evil intent reveals how broken it can be.

I look forward to hearing your perspectives on things once again.

Blessings to All!

Jackleg1

I agree with that being (a) difference and I know as I own some of it as well. I think the reason they could not get funding to continue the development of Meged field was twofold, environmental and poor management.

They 'fracked' loose term here, but with the technologies perfected in the Permian, it becomes feasible but no infrastructure to do it.

Same issue as Golan.

That was not the major difference between the two in my mind though.

You see, Givot is not or was not constantly attacked like Zion IS and WAS.

Why? (Note: do not give standard affinity scam bs either. Bruce you know, you have been following for years, at least your civil in your dislike of Zion Oil and for that I thank you).

The biggest difference is Givot Olam is a limited partnership, not a common stock.

For example, the payouts to the limited partnership are capped. When the General Partnership pays back the limited partnership, plus a certain percent, the limited partnership is dissolved. The limited partners are not owners. This is NOT a stock.

And now you know why you've never seen an annual report out of Givot Olam. Or why you have not been asked to vote on their officers or other company matters. Or why the 40 billion dollar oil field was never developed.

I have a copy of the partnership agreement pdf in English from about a dozen years ago, but I don't think it's on the net anymore. If someone can tell me how to post this as an attachment, I will.

Interesting that this company has already found oil in Israel and yet is quiet in the markets.

This one was never attacked like that other one. What is the underlying difference between these two stocks? There are many of course but there is one particular major difference......

Good Day..

Wow what a day? I mean after all the noise and such over months and months and of all days for them to 'disappear'. I just love the volume as well. I could give a hoot about the price but that VOLUME> 40% in ONE SINGLE DAY??


Wow, this is amazing.....


oops wrong stock. My bad

We need to talk.
https://investorshub.advfn.com/Magic-Box-Watch-5872/

Well, It is what it is......lots are happy. Silence the voices....

I miss your spreadsheets.

Hello all, not much going on in Givot's world at the moment.


Does anyone have any updates?

Any updates on this? Its been a while and it still trades.

I would hope that folks know that someone purchased the area in which the Meged filed produced oil.

DELEK

This will be bad news for Givot. I guess we all need to worry about Gobal warming as well, even though we are in a solar minimum at this time.

Wow


Mar 24, 2019 9:39 PM

Israel's Environment Ministry Calls to Halt Oil Production: Shale Oil and Fracking Too Dangerous

JRYAN - Got it. Thanks. With such a little cost involved, I’ll hold my shares and wait for possible things to unfold in the future. As always, I always appreciate your posts.

JRyan - Hey there bro! I got some shares also many months ago because Shapiro Engineering was interested in this company. They are a HUGE firm. Interesting research. I’m holding my shares. ........ I just have a good feeling and peace about this Israeli company and its potential future.

What is the status?

With Zion awaiting results, is Givot still in the game? I own a few shares but with so many, they are not worth much anymore.

Maybe some good news?

http://www.globes.co.il/en/article-givot-olam-oil-exploration-license-deadline-extended-1001231439

Is this board still active?

Givot Olam is a company under the radar that is a treasure. They recently completely revamped their website www.Givot.co.il

Biggest onshore discovery of oil in Israel in recent years. Started producing oil in 2011 having produced as of 3/2014 of 565,000 barrels of oil from the meged 5 well.

Drilled the merged 6 well, and production tests will be completed 11/2014. Will be drilling the meged 8 next.

I invested in givot, knowing that my investment is blessing Israel. Hope that the news gets out.

I have a friend that bought this stock about 6 months ago and it hasnt moved. He did hear that there is a contract with the gov. of Isreal to drill.

anyone thinks anything good about this stock?

http://failedmessiah.typepad.com/failed_messiahcom/2011/06/scam-chabad-stocks-price-dramatically-rises-based-on-a-23-year-old-blessing-from-the-lubavitcher-rebbe-123.html