Delek Drilling and Avner Oil & Gas have posted a successful third quarter. Demand for natural gas totaled 2.5 billion square meters (BCM) in the quarter, compared with 2.2 billion in the corresponding quarter of 2014.
Delek drilling had sales, net of royalties, of $63.9 million in the third quarter of 2015, compared with $54.2 million in the corresponding quarter. Its net profit was $38.8 million, compared with $22 million in the corresponding quarter.
Avner Oil & Gas had revenue net of royalties of $61.9 million in the third quarter of 2015, compared with $54 million in the corresponding quarter. Its net profit was $37.3 million, compared with $23 million in the corresponding quarter.
During the third quarter, the state was paid royalties from the Tamar gas field of NIS 230 million. Royalties for the first nine months of 2015 totaled NIS 575 million.
The companies, both units of Delek Group Ltd. (TASE: DLEKG), state in their reports that they see exports of gas to private customers in Egypt (Dolphinus Holdings) starting in the second half of 2016, and not in the second half of 2015 as was assumed in the capitalized cash flow. As for the Block 12 reserve in Cyprus, owned by Delek Group and Noble Energy, the companies' reports state that together with the government of Cyprus, the partners are examining the possibility of changing the work plan, but that further drilling in the block will take place by May 2016. The partners are also continuing to negotiate with the Cyprus government on supplying natural gas form the Tamar field to Cyprus.
Delek Drilling chairman and Avner Oil & Gas CEO Gideon Tadmor said, "Now, after the approval of the gas outline by large majorities in the security cabinet, the government and the Knesset, the Leviathan project and the Tamar expansion project are on the runway, and we are about to see the realization of the regional potential of Israel's gas discoveries, which will contribute to strengthening Israel's standing in the region. We must not lose the historic opportunity that lies before us because of small-minded and costly politics."
Published by Globes [online], Israel business news - www.globes-online.com - on November 16, 2015
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