Bloomberg News

Isramco Climbs to One-Month High on Raised Tamar Estimate

March 25, 2012

Isramco Negev 2 LP (ISRAL) climbed to the highest close in a month after the gas and oil exploration company raised the estimate for proven and probable reserves at the Tamar natural gas field.

The shares gained 2.7 percent to 0.53 shekel, the highest since Feb. 22, at the 4:30 p.m. close in Tel Aviv. Delek Drilling-LP (DEDRL) and Avner Oil Exploration LLP (AVNRL), partners in the Tamar site, also advanced, with Delek Drilling rising 2.6 and Avner climbing 2 percent.

Isramco said proven and probable reserves at the field off the coast of Israel were raised to 9.7 trillion cubic feet from a previous estimate of 9.1 trillion cubic feet.

“The increase in quantities derives from additional data that has been gathered as the drilling and the development of the reservoir proceeds,” said Ella Fried, an analyst at Bank Leumi Le-Israel Ltd. (LUMI) “This is positive news, which follows on the heels of recent contracts with clients and potential clients and ahead of drilling scheduled to begin in April in the Shimshon license in which Isramco holds a 39 percent stake.”

Last week OAO Gazprom’s marketing unit signed an initial deal to buy liquefied natural gas from fields discovered off Israel’s Mediterranean coast. This month, the partners in the Tamar field signed a 15-year agreement to supply Israel Electric Corp. with the fuel.

To contact the reporters on this story: Gwen Ackerman in Jerusalem at gackerman@bloomberg.net; Shoshanna Solomon in Tel Aviv at ssolomon22@bloomberg.net

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


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