Bloomberg News

Ratio Climbs Most in Seven Months on Leviathan 3 Work Plan

October 02, 2011

(Updates with closing prices from first paragraph, index in fourth, analyst in fifth.)

Oct. 2 (Bloomberg) -- Ratio Oil Exploration 1992 LP jumped the most in more than seven months after the partners in Israel’s largest natural-gas discovery said drilling at the Leviathan 3 site will be finished in mid-November.

Ratio shares advanced 8.8 percent, the biggest jump since Feb. 22, to 0.286 shekel at the 4:30 p.m. close in Tel Aviv today. Avner Oil Exploration-LP and Delek Drilling-LP, other partners in the project, increased 2.8 percent and 2.2 percent to 1.748 shekels and 9.69 shekels, respectively.

Drilling will be completed within budget at a cost of about $100 million, the partners said today in statements to the Tel Aviv Stock Exchange.

The Tel Aviv Oil & Gas Exploration index has gained 13 percent in the past five trading days, compared with a 1.5 percent increase for the benchmark TA-25 measure.

“Things are becoming clearer, and we are seeing progress in drilling schedules,” said Richard Gussow, analyst at Deutsche Bank AG in Tel Aviv. “It is becoming more and more evident every day that Egyptian gas is not reliable and that makes Israeli gas more valuable.”

Israel has not received gas from Egypt since the last attack on pipeline operator East Mediterranean Gas Co.’s network on July 12. Prior to those bombings, Israel received about 40 percent of its gas from Egypt.

Israel Electric Corp., the main buyer of Egyptian gas, is using imported crude oil and diesel to make up the shortfall.

The use of diesel fuel for electricity production doubled during the first eight months of the year, compared to the year- ago period, and cost the economy 10 million shekels ($2.7 million) a day, the National Infrastructures Ministry said today.

--Editors: Shanthy Nambiar, Dick Schumacher.

To contact the reporter on this story: Susan Lerner in Jerusalem at slerner2@bloomberg.net Gwen Ackerman in Jerusalem at gackerman@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


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