‘Black Gold’ Rush Hits Israel’s Stock Market

The Israeli stock exchange (TASE) closed up yesterday. One of the shining stars in Israel’s trading economy? Oil and gas companies. Israeli Haaretz newspaper reported today:

“Over here, if anything’s hot it’s the oil and gas sector. After having gained 2,470% in the past four months, units of oil exploration partnership Modi’in rose another 9.1% yesterday. The company pulled off a NIS 20 million rights issue that took it of the Maintenance List of companies not in compliance with Tel Aviv Stock Exchange listing rules.” (read Haaretz article)

Delek Energy seeks bigger stake in Avner Oil partnership

Yitzhak Tshuva-controlled Delek Group Ltd. (TASE: DLEKG) subsidiary Delek Energy Systems Ltd. (TASE: DEOL) today published a shelf prospectus for an offering through an exchange offer to purchase of 517,300 Delek Energy shares for 347 million shares in Avner Oil and Gas LP (TASE: AVNR.L). Delek Energy will offer one share for each 670.65 partnership units in Avner.

The offer to purchase does not apply to Delek Energy’s sister company, Delek Investments and Properties Ltd., and subsidiary, Avner Oil Exploration Ltd., which currently own 47.27% of Avner altogether. Delek Energy is seeking to acquire 10.4% of Avner. Implementation of the offer to purchase depends on a favorable response by owners of 262.7 million partnership units in Avner, amounting to 75.73% of the units in the offer to purchase. Delek Energy has the right to make new offers to purchase in the future, regardless of the outcome of the current offer, at the same or different terms, at its sole discretion.

In the event of a full response to the offer to purchase, Delek Energy will increase its stake in Avner from its current 38.12% to 48.5%. If the offer is successful, it will boost Delek Energy’s chances of inclusion in the Tel Aviv 100 Index at the upcoming review. The company’s low liquidity currently keeps it out of the index.

Delek Energy’s share rose 14% by mid-afternoon today to NIS 816.10, giving a market cap of NIS 3.3 billion. Avner’s share rose 3.8% to NIS 1.20, giving a market cap of NIS 3.92 billion.

Published by Globes [online], Israel business news – www.globes-online.com – on November 8, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

Gas Discovery Already the Bright Spot in Israel’s Economy

One bright spot in Israel’s financial markets. Today Israel’s Haaretz news organization posted a fairly bleak story on Israel’s financial markets. (http://www.haaretz.com/hasen/spages/1065141.html) Nothing new in that; stories of down markets are the daily fare in the midst of our worldwide economic meltdown. There was, however a bright spot (brilliant bright!) “Isramco, a main partner in the Tamar-1 exploration that found the huge field of gas off the Haifa shore, exploded upwards again, closing 24% higher on huge turnover of NIS 90 million.” Stock value in Delek Group, also a partner in the Tamar-1 gas discovery, has more than doubled in the last two months. Could Israel’s massive gas discovery (and possibly and oil discovery in the near future) play a major role in saving Israel’s economy? It looks like it already is. Just so you know, here are the partners in the Tamar -1:

Who all is involved in Israel’s offshore gas discovery? Just so you know, here are the partners in the Tamar -1:

1. Noble Energy: 36 percent (Houston, TX, ticker symbol: NBL – NYSE, http://www.nobleenergyinc.com)

2. Isramco Negev: 28.75 percent (Petach Tikvah, Israel, ticker symbol: ISRA.L – TLV)

3. Avner Oil Exploration: 15.625 percent (Petach Tikvah, Israel, ticker symbol: AVNR.L – TLV)

4. Delek Drilling: 15.625 percent (Netanya, Israel, ticker symbol: DEDR.L –TLV, http://www.delek.co.il )

5. Dor Gas Exploration: 4 percent (Yakum, Israel)