Delek Energy Systems Ltd., which has a stake in the Tamar offshore natural gas field via two units, surged the most in more than six months as production started at Israel’s second-largest gas field.
The shares of the company with holdings in Tamar field partners Delek Drilling-LP and Avner Oil Exploration LLP gained 5.9 percent, the most since Sept. 27, to 1,804 shekels, in more than twice the three-month average daily volume at the close in Tel Aviv. Delek Group Ltd., which holds an 86.7 percent stake in Delek Energy, advanced as much as 2.3 percent before closing unchanged at 1,021 shekels. The benchmark TA-25 Index rose 0.4 percent to 1,242.54.
The partners in the field, which also include Noble Energy Inc., Isramco Negev 2 LP and Dor Alon Energy in Israel (1988) Ltd., said gas started flowing on March 30. The field, in the eastern Mediterranean Sea, is estimated to hold 9 trillion cubic feet of natural gas and along with the Dalit field could supply Israel with gas for two decades.
“Because of the gas flow at Tamar, investors are lowering the risk of the project and that raises its valuation,” Guil Bashan, an analyst at IBI-Israel Brokerage & Investments Ltd. in Tel Aviv, said today by phone. “This is good news for the gas explorers.”
Delek Energy shares have advanced 12 percent this year compared with a 0.3 percent rise in the Bloomberg World Oil & Gas Index. Delek Group shares have advanced 17 percent. The flow from Tamar is expected to contribute about 1 percent to Israel’s gross domestic product, the Bank of Israel said in a March 24 report, forecasting that the economy will grow 3.8 percent in 2013, including the contribution from gas.
UBS AG today raised the price estimate for Delek Group and Delek Drilling by 2.2 percent to 1,170 shekels and 18.9 shekels, respectively. The bank also increased Avner’s price projection to 3.39 shekels from 3.29 shekels and that of Isramco to 0.72 shekel from 0.66 shekel.
Delek Drilling dropped 0.6 percent to 15.58 shekels. Avner was unchanged at 2.69 shekels. Isramco slid 0.8 percent to 0.66 shekel. Dor Alon gained 1 percent to 34.74 shekels.