Tamar Petroleum Ltd. (TASE: TMRP) has seen its share price fall sharply today after the company's board decided to postpone a secondary offering of NIS 140 million due to "market conditions." The company's share price is down 12% today and is down 50% over the past year.
Tamar Petroleum was founded by Delek Group Ltd. (TASE: DLEKG) and its energy exploration and production unit Delek Drilling LP (TASE: DEDR.L) in 2017 as a special vehicle to sell its holding in the Tamar offshore gas field after the government insisted Delek sell its stake in either the Tamar or Leviathan fields to prevent it gaining a monopolistic stranglehold on Israel's gas market. After offerings by Delek and Noble Energy Inc. (NYSE: NBL), Tamar Petroleum today holds a 16.75% stake in the Tamar field along with Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) (28.75%), Noble Energy (25%), Delek Drilling LP (TASE: DEDR.L) (22%), Alon Natural Gas Exploration Ltd. (TASE: ALGS) (4%), and Everest infrastructure Fund (3.5%).
Ahead of Tamar Petroleum's offering, which has now been postponed, the company published updated figures about the gas field. The mount of gas remaining in the field is about 300 billion cubic meters (BCM) and the field will supply 9.3 BCM in 2020, going down to 8.5 BCM in 2021 but rising again to 9.75 BCM in 2022 and 10.4 BCM every year thereafter.
Tamar's rival field Leviathan began producing gas in the past two weeks for Israeli Jordanian and Egyptian consumers and next year the Karish gas field operated by Energean Gas & Oil plc (LSE: ENOG; TASE: ENOG) will come on stream, thus putting downward pressure on gas prices.
Tamar says that the $5.50 per thermal unit being paid by the Israel Electric Corporation (IEC) (TASE: ELEC.B22) for Tamar gas is likely to fall by 25% from 2021.
Published by Globes, Israel business news - en.globes.co.il - on January 12, 2020
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