Huge Israeli Gas Find Even More Massive Than Expected
A massive natural gas find off the coast of Haifa which was lauded as capable of fueling all of Israel for 15 years is actually more than 60 percent larger than originally estimated, according to the American partner in the drill, Noble Energy Inc.
The implications of this discovery to Israel cannot be overstated
Israeli companies Isramco Negev 2, Delek Drilling, Avner Oil Exploration, and Dor Gas Exploration had the majority of the stake on the dig – named Tamar-1 – which is estimated at a potential of 5 trillion cubic feet of natural gas. That estimate is up from January, at which time the partners believed the well contained 3 trillion cubic feet of gas.
The team will keep their drilling rig in the area for two more wells they believe may be present as well.
"The implications of this discovery to Israel cannot be overstated," said Noble Energy Chief Executive Officer Charles Davidson, in a statement issued after following the revision of the estimate.
Isramco shares, which have skyrocketed 736 percent since the start of the year, were 7.2 percent higher on Wednesday morning compared with declines of over 2 percent in the broader market.
Delek Drilling is up 6.4 percent as of Wednesday morning, with Avner up 4.8 percent. Conglomerate Delek Group (DELKG.TA), the parent of Delek Drilling and Avner, is up 5.9 percent.