Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) is facing delays in its financing agreement with Deutsche Bank AG (NYSE: DB; DAX: DBG). The oil and gas exploration partnership needs the bridge loan to finance is share of the development costs of the Tamar gas field.
In a notice to the TASE today, Isramco said, "Whereas the parties have not yet completed formulating all the documents of the financing agreement, the partnership and the bank have agreed to extend the deadline stipulated (in the term sheet) for signing a binding agreement until 15 June 2010, from 15 May."
Isramco signed the term sheet with Deutsche Bank for a $350 million, 36-month bridge loan to finance the partnership's share of the development of the offshore Tamar gas field.
Two other partners in the field, Delek Group Ltd. (TASE: DLEKG) subsidiaries Delek Drilling LP (TASE: DEDR.L) and Avner Oil and Gas LP (TASE: AVNR.L), stated in their financial reports for the first quarter, published on Thursday, that the total cost of developing the Tamar field would be $2.8 billion.
Isramco owns 28.75% of the Tamar gas prospect, Avner and Delek Drilling each own 15.625%, Noble Energy Inc. (NYSE: NBL) owns 36%, and Dor Alon Energy in Israel (1988) Ltd. (TASE:DRAL) unit Dor Alon Energy Exploration Ltd. owns 4%.
Isramco's share price fell 4.1% at the opening on the TASE today to NIS 0.51. Avner's share price fell 3.4% to NIS 1.47, and Delek Drilling's share price fell 4.4% to NIS 8.51.
Published by Globes [online], Israel business news - www.globes-online.com - on May 16, 2010
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