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Delek Group last week set up a special purpose vehicle, Tamar Petroleum, to market an initial 9.25% via a bond issue and an IPO.
Delek says it expects to raise a combined $1-1.2bn through this week’s bond issue of 5% of Tamar, with a further 4.25% floated via an IPO next week. The upper $1.2bn valuation implies $650mn from the bond issue, $550mn from the IPO and a $12.97bn valuation for Tamar as a whole.
Tamar is Israel’s sole producing gas field with output of 1bn cfd, sold to local power generators and industrial firms under long-term contracts. Following the most recent Tamar-8 well, completed in April, operator US firm Noble Energy says revisions could be made later this year to both the gas in place and recoverable resource estimates. (CONTINUED - 498 WORDS)