Back in February 14, 2016, Steven Scheer reported for Reuters that Israel’s Prime Minister Benjamin Netanyahu was testifying before Israel’s Supreme Court to defend a gas deal to develop a Leviathan field off Israel’s Mediterranean coast.
Critics had argued that the planned control of the country’s gas reserves by one consortium would limit competition and keep prices high.
Under the deal, Nobel Energy Inc. based in Houston, Texas and Israel’s Delek Group, which discovered Leviathan in 2010, would retain control of the field. In July, 2010, Noble Energy announced that seismic studies indicated there was a 50% chance of the Leviathan field containing natural gas. After the initial exploration and drilling, the discovery was announced in December, 2010. The second stage drilling estimates the reserves to be 622 billion cubic meters.
Orr Hirschauge and Rory Jones reported on May 22, 2016 in the Wall Street Journal that Netanyahu approved an amended deal to develop the Leviathan fields. This gives Nobel Energy Inc. and Delek Group the green light to develop the fields and export the natural gas to markets such as Jordan, Turkey, and Egypt. In total, Israel sits on fields containing more than 32 trillion cubic feet of gas.
Nobel Energy Inc., NBL $35.62 has a market cap of 15.12B, with average volume of 4.27M. Revenue in 2015 was 3.13B and total assets in 2015 were 24.2B. It’s EPS is -6.35.
Israel’s Delek Group, DGRLY $17.26 has a market cap of 2B with 119.84M shares outstanding. It’s DIV yield is 7.5%.
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This is really good news comes from Israel’s Supreme Court and now leviathan field development is on the way.