Clal
Finance analyst Yaron Zar notes thatNoble Energy Inc.(NYSE:NBL)
is seeking a strategic partner for the Leviathan and Cypriot Block 12 fields
within 6-9 months. In a presentation earlier this week, the company said it has
an "advisor to assist in screening strategic partners."
Zar reiterated his
"Buy" recommendations for Noble Energy's partnersDelek Group
Ltd.(TASE:DLEKG) unitsAvner Oil and Gas LP(TASE:AVNR.L)
andDelek Drilling LP(TASE:DEDR.L).
In the presentation, Noble Energy
cites its five natural gas discoveries in the Eastern Mediterranean with over
33 trillion cubic feet (TCF) gross resources, including the most recent Cyprus
A discover with a gross mean resource of 7 TCF. The remaining potential of the
discoveries is 12 TCF of gross unrisked natural gas and 4 billion barrels of
oil equivalent of oil in deep strata.
Zar says, "Following the Tanin
discovery, the remaining gas potential is 11 TCF. We believe that most of this
potential is in the Alon and Ruth licenses."
Zar reiterated his assessment that
gas sales from the Tamar field will begin in the second quarter of 2013. In the
presentation, Noble Energy predicted first sales from Tamar in April 2013, 2.5
years after authorization and four years after the discovery. It added that the
platform, jacket construction and pipeline are more than 50% completed, and
expansion of the onshore facility is underway.
Noble Energy adds that there is a
compelling case for natural gas exports from its
Eastern Mediterranean
discoveries, as the existing
discovered resources exceeds projected domestic needs, exports will generate
government revenues, and there is additional exploration potential.