Delek Group Ltd. (TASE:DLEKG) notified the Tel Aviv Stock Exchange (TASE) today that its Ithaca Energy unit has completed the acquisition of Japanese company Marubeni Oil and Gas for $140 million. The acquisition is designed to increase Ithaca's oil and gas reserves in the North Sea.
Following the report, Delek Group's share price rose 7%, to complete a 55% rise in the last month and a half, and 550% since March 2020 when the Covid crisis began, giving the company controlled by Yitzhak Tshuva, a market cap of NIS 6.5 billion.
Ithaca Energy and Delek have been benefitting from the sharp rise in energy prices since October 2020. Over that period the price of a barrel of Brent crude has jumped 150% to $93 per barrel.
The acquisition of Marubeni will increase Ithaca's production capacity by an estimated 7,000-8,000 barrels of oil per day. According to Delek Group, the deal forms part of Ithaca's strategy of expanding and developing activities in the UK waters of the North Sea, as part of its plans to raise capital on the capital market or bring in private investors.
Published by Globes, Israel business news - en.globes.co.il - on February 6, 2022.
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