Delek Shares Rise on Tamar Anticipation

Shares in Israeli company Delek have been buoyant as investors expect the Tamar gas field to enter production soon, Bloomberg reports.

The shares of Netanya, Israel-based Delek Group rose 1.5% to 1,037 shekels, set for the highest close, in Tel Aviv. The stock, up 40% in the past 12 months, has risen 19% this quarter, and is headed for an eighth month of gains.

Delek Group owns stakes via Delek Drilling and Avner Oil Exploration in the Tamar offshore natural gas field that is scheduled to start production by the second quarter of this year. Last week Delek’s controlling shareholder Isaac Tshuva said gas from Tamar will start to flow “very soon.”

The larger Leviathan field is estimated to hold as much as 20 trillion cubic feet (tcf) of gas, more than the UK’s remaining reserves. Combined with the Tamar predicted yield, the gas could last Israel for 150 years, by some estimates.

“Tamar is expected to start production any day and that is one of the reasons behind the share rally,” Richard Gussow, a senior analyst at Tel Aviv-based DS Securities & Investments Ltd, told Bloomberg. “Once investors see Tamar gas flowing it will bolster investor confidence in the gas sector.”

Earlier this week Delek announced that it had provided a performance guarantee to Cyprus, in respect of exploration in Block 12, in Cypriot waters. Delek Drilling is in partnership with Avner to explore the area. Cyprus hydrocarbon potential has been much in the news, with speculation about the Mediterranean island's possible gas wealth and how this might have assisted in its multi-billion euro bailout terms.