UBS has raised its valuation of the Tamar gas field to $8.8 billion from $8.1 billion to reflect higher price and reserves estimates. UBS has incorporated the pricing formula of Israel Electric Corporation (IEC) (TASE: ELEC.B22) as detailed by Noble Energy Inc. (NYSE: NBL) (US CPI + 1% through 2020, CPI - 1% thereafter), and raised its average price for Tamar to $6.75/mmbtu from $6.65/mmbtu.
UBS analyst Roni Biron has also raised Tamar's 2P estimate to 9.7 Tcf from 9.1 Tcf to reflect NSAI’s latest revision and views any export revenue under the memorandum of understanding with DSME as an upside to its model.
Despite its higher valuation, UBS has slightly lowered target prices for the Tamar partners with the exception of Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L).
Noble Energy 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 owns 28.7%, and Dor Alon Energy in Israel (1988) Ltd. (TASE:DRAL) unit Alon Natural Gas Exploration owns 4%.
Published by Globes, Israel business news - www.globes-online.com - on April 3, 2012
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