Israel Land Development Company Energy Ltd. (TASE: IE), controlled by Ofer Nimrodi, has bought rights in four offshore natural gas exploration licenses from Delek Group Ltd. (TASE: DLEKG), Noble Energy Inc. (NYSE: NBL), and Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L). In a separate deal, Modiin Energy LP (TASE:MDIN.L) bought rights from Delek Group Ltd. (TASE: DLEKG).
ILDC Energy bought 17.5% of Delek and Noble Energy's rights in the Alon E and Ruth D, in the northern part of Israel's maritime exclusive economic zone, near Tamar and Leviathan, in exchange for participating proportionally in exploration expenses. It bought 10% of the Daniel license from Isramco, in exchange for an option to buy 5% of the rights in the Sarah license.
There has been great interest in the Daniel license ever since Isamco announced several interesting drilling prospects were found by a 3D seismic survey on a 200-square kilometer section of license earlier this year. Isramco has declined to publish the survey's data, saying that the finding are only "leads", and do not include the geological chances of success. Israel Opportunity Energy Resources LP (TASE: ISOP.L) earlier bought 10% of the Daniel license.
With the new acquisitions, ILDC Energy has holdings and options in eight licenses. It already owns 54.2% each of the Myra and Sarah licenses, and has options to the Benjamin and Shmuel licenses.
Modiin Energy, controlled by Tzachi Sultan and Nochi Dankner-controlled IDB Holding Corp. Ltd. (TASE:IDBH), owns rights in several licenses, most notably 19% of Myra and 28% of Sarah. It wants to buy from Delek 5% of the Avia license and 10% of the Keren license, located northwest of Delek and Noble Energy's Yam Tethys.
Modiin Energy said that it will pay Delek Group subsidiary Delek Energy Systems Ltd. (TASE: DEOL) and its subsidiaries Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) $356,000.
Among the sellers, Delek Group's share price fell 0.1% in morning trading to NIS 872.40, Delek Energy's share price rose 2.2% to NIS 1,413, Avner's share price fell 0.3% to NIS 2.35, and Delek Drilling's share price fell 0.1% to NIS 13.35. Isramco's share price fell 0.5% to NIS 0.39. Among the buyers, Modiin Energy's share price was unchanged at NIS 0.04, giving a market cap of NIS 748 million and ILDC Energy's share price rose 5% to NIS 0.73, giving a market cap of NIS 590 million.
Published by Globes [online], Israel business news - www.globes-online.com - on February 24, 2011
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