Haifa offshore natural gas exploration to go ahead

Tuesday, Oct 21, 2008

Delek Group Ltd. (TASE: DLEKG) and Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) today reported that the Atwood Hunter oil rig slated to drill at the Tamar 1 natural gas concession offshore from Haifa, has departed West Africa en route to Israel. The Atwood Hunter is due to arrive during the second half of November.

The Tamar 1 exploration is one of the largest natural gas explorations underway in Israel, with an investment of $144.5 million. The partners in the concession are Delek subsidiaries Delek Drilling Limited Partnership (TASE: DEDR.L) and Avner Oil and Gas LP (TASE: AVNR.L) (a 28% share altogether), Isramco (28%), Noble Energy Inc. (NYSE: ) subsidiary Nobel Energy Mediterranean Ltd. (33%), Dorgas Ltd. (6%), and STX, controlled by Benny Steimetz (5%). STX reportedly withdrew plans to participate in the Tamar 1 exploration; its share in the investment was $7 million.

The other partners nevertheless decided to go ahead with the exploration. Energy market sources believe that Delek and Isramco will buy out STXs stake.

Source: Globes