Clal Finance analyst Yaron Zar notes that Noble Energy Inc. (NYSE: NBL) is seeking a strategic partner for the Leviathan and Cypriot Block 12 fields within 6-9 months. In a presentation earlier this week, the company said it has an "advisor to assist in screening strategic partners."
Zar reiterated his "Buy" recommendations for Noble Energy's partners Delek Group Ltd. (TASE: DLEKG) units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L).
In the presentation, Noble Energy cites its five natural gas discoveries in the Eastern Mediterranean with over 33 trillion cubic feet (TCF) gross resources, including the most recent Cyprus A discover with a gross mean resource of 7 TCF. The remaining potential of the discoveries is 12 TCF of gross unrisked natural gas and 4 billion barrels of oil equivalent of oil in deep strata.
Zar says, "Following the Tanin discovery, the remaining gas potential is 11 TCF. We believe that most of this potential is in the Alon and Ruth licenses."
Zar reiterated his assessment that gas sales from the Tamar field will begin in the second quarter of 2013. In the presentation, Noble Energy predicted first sales from Tamar in April 2013, 2.5 years after authorization and four years after the discovery. It added that the platform, jacket construction and pipeline are more than 50% completed, and expansion of the onshore facility is underway.
Noble Energy adds that there is a compelling case for natural gas exports from its Eastern Mediterranean discoveries, as the existing discovered resources exceeds projected domestic needs, exports will generate government revenues, and there is additional exploration potential.
Published by Globes [online], Israel business news - www.globes-online.com - on February 9, 2012
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