The Tamar license partners have received a revised estimate of natural gas reserves in the reservoir of 9.44 trillion cubic feet (best estimate) from Netherland, Sewell & Associates, Inc. (NSAI). The previous best estimate was 8.6 trillion cubic feet of gas.
Noble Energy Inc. (NYSE: NBL) owns 36% of Tamar, Delek Group Ltd. (TASE: DLEKG) subsidiaries Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) each own 15.625%, Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) owns 28.7%, and Dor Alon Energy in Israel (1988) Ltd. (TASE:DRAL) unit Alon Natural Gas Exploration Ltd. (TASE: ALGS) owns 4%.
NSAI's revised low estimate is 6.66 trillion cubic feet and its high estimate is 11.18 trillion cubic feet.
Tamar's partners estimate the cost of developing the reservoir at $3 billion. Isramco has not yet approved the budget.
NSAI also notified Isramco that Tamar's net contingent cash flow (after taxes and royalties) to the company for the best estimate is between $7.2 billion (at no discount) and $572.5 million (at a 20% discount).
Delek Group's share price fell 1.6% in morning trading to NIS 618.20, giving a market cap of NIS 7.17 billion, Avner's share price fell 1.5% to NIS 1.81, giving a market cap of NIS 6.15 billion, Delek Drilling's share price fell 1.9% to NIS 9.82, giving a market cap of NIS 5.48 billion, and Isramco's share price fell 1.7% to NIS 0.40, giving a market cap of NIS 4.9 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on August 18, 2011
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