Ratio Oil Drops Most in 2 Weeks Amid Share Sale: Tel Aviv Mover
Ratio retreated 3.6 percent, the biggest intraday decline since April 25, to 0.325 shekel at 12.45 p.m. in Tel Aviv on volume 1.4 times the three-month daily average. The benchmark TA-25 Index gained 0.1 percent.
The Tel Aviv-based company, which also holds stakes in the Neta and Roi energy licenses, said today it expects to raise 50.6 million shekels ($14 million) through the sale of participation units and options redeemable into stock until January 2015. The offering has put pressure on Ratio’s shares, according to Guil Bashan, an analyst at IBI-Israel Brokerage & Investments Ltd. The stock is down 4.1 percent this year amid concern over government natural-gas export quotas.
“They need the money to continue their work on their licenses,” Tel Aviv-based Bashan said by phone. “At the end of 2013, there are plans to drill Leviathan for oil. All of this needs money.”
Gross contingent resources at Israel’s biggest natural gas field amount to about 19 trillion cubic feet, consultants Netherland, Sewell & Associates Inc. said this month. Houston- based Noble Energy Inc. (NBL), a partner in the field, plans to drill at the site “later this year,” according to its website. Output for domestic markets is set to start in 2016, Noble said in December.
Ratio Oil’s stock was upgraded to outperform from market perform by Bank Leumi-Le Israel Ltd. on May 6, with a price estimate of 0.4 shekel.
Natural gas discoveries off the nation’s coast are forecast to meet the country’s demand for the next 20 years and enable Israel to become a gas exporter. Israel started natural gas production at the Tamar gas field, situated in the eastern Mediterranean Sea, in March.
To contact the editor responsible for this story: Claudia Maedler at email@example.com