26.02.2011

LPG or autogas is a low carbon fuel thus the CO2 emissions are much smaller than for other fuels. LPG has a higher octane number that benzene (the octane value of benzene is increased by adding MTBE).

LPG is easy to store and transport in its liquid state just like benzene and diesel oil and easily turns into gas in which phase the combustion process takes place together with oxygen.

LPG has a better combustion ability and is cleaner than benzene and diesel.

In 2011, more than 16 million cars around the world run on LPG or autgas. Since the 1980s and especially since the last decade, the main source of LPG (60%) comes from natural gas fields which saves on the need of refinery, saves emissions from the refinery process and of the transportation thereof.

Cash flow from operations less non acquisition capital

Revenue less lease operating expenses, production taxes, transportation and DD&A

Revenue less lease operation expenses, production taxes and transportation

Revenue less capital, lease operating expenses, production taxes, transportation and income taxes

Discretionary cash flow less capital

Revenue less lease operating expenses, production taxes, transportation and income taxes

Delek Group is one of the largest and most dynamic investment groups in Israel, whose activities include inter alia Israel’s second largest petroleum company, a major car importer, one of Israel’s biggest real estate companies, oil and gas exploration, IPPs and desalination projects and petroleum activities in the U.S.A. Delek is partner in all of Israel’s major natural gas operations, which include the Yam Tethys project, the Tamar/Dalit project and currently the drilling of the Leviathan project.

Yam Tethys – project which includes Mari-B and Noa fields owned by Noble Energy (47%) and Delek (53%). Mari-B which contained reserves of circa 30 bcm came into production at the end of 2003 and is the only Israeli field supplying the Israeli market to date with contracts to Israel Electric Corporation, the Oil Refineries, Hadera Paper Mills and others. On 31st December 2009 the proved updated reserves in Mari-B were 13 bcm. The Noa field has 6.2 bcm of proven reserves. Currently, the partners are considering developing the field as a tie-back to the Mari-B platform.

Tamar – project includes the Tamar and Dalit fields owned by Noble (36%), Isramco (28.75%), Delek (31.24%) and Dor Gas (4%). Tamar was declared a commercial discovery in January 2009 with proven reserves of 247 bcm and Dalit with 14 bcm. In August 2010, the Ministry approved the partners’ development plans for the Tamar field at a cost about $3.5 billion, consisting of a sub-sea development, initially with 5 wells and construction of a double pipeline from the field to a production platform to be constructed close to the existing Yam Tethys platform and from this platform the gas is to flow into the existing 30 inch pipeline to the Yam Tethys receiving facility in Ashdod. To date the partners have signed a number of MOUs with natural gas consumers but have not concluded any binding GSA agreements. This is mainly due to the establishment of the Sheshinski Committee which is examining the country’s oil and gas fiscal policy with the objective to increase government take. To date there are no development plans for Dalit.

Leviathan – license owned by Noble (39.66%), Delek (45.34%) and Ratio (15%). The well was spudded on 17th October 2010 and notification was given by the operator Noble on 29th November 2010 that it seems that the primary target (NG10 prospect) has natural gas bearing sands. Operations are continuing including electric logs and production tests to determine the extent and quality of the reservoir. Estimated chance of success prior to drilling stood at 50% to discover 16 tcf of natural gas

Export options – currently Israel consumes 5 bcm of gas per annum a figure which is expected to increase to about 10 bcm by 2015. Consumption over the next 20 years is estimated to be about 230 bcm, part of which is met by Egyptian gas. Thus, due to the much higher potential reserves of gas in Israel than needed for local consumption, both Delek and its partners and the government of Israel are looking for export options.

Delek Drilling 2010 Report:

Mari-B 1 P proved reserves = 10.18 bcm and 3 P = 11.43 bcm
Noa + Noa South = 1 C contingent resources = 3.26 bcm (Noa has 2.19 & Noa South1.067) and 3C = 3.76 bcm (Noa has 2.5 bcm and Noa South 1.15 bcm)
Tamar 1 C 183.49 bcm and 3C 294.58 bcm
Dalit 1 C 6.14 bcm contingent resources + 6.01 bcm prospective resources
3C 9.48 bcm + 9.46 bcm
Leviathan 1C 321 bcm and 3C 596.95 bcm

19.02.2011

Controlled by real-estate entrepreneur Ehud Ben Shach and Accountant Nissan Caspi also an energy entrepreneur and a senior financial advisor in the field of energy and infrastructure.

The profile of assets of the Global Power is based on a range of projects in the private electricity generation sector which Caspi has been putting together these past few years. At the head of the list is the project to set up an IPP by IPM in Beer Tuvia, which is supposed to be a 413 MW CCGT for $400 million. In this project, Shikun Ve’Binui holds 60% and the IPM group which includes Eco Capital (15%), Epstein Engineering of Dr. Yoav Sarne, the PS partnership of Adv. Yehuda Rave and Hagi Marom and the US Power Company from Chicago. This project is still at the statutory stages and has been delayed this past two years because of opposition from the local citizens.

Another project that could be conceptualized soon is that of the IPP at the Silica plant which is a cogeneration plant of 115 MW out of which 15 MW would be used by the Silica factory and 90 tons of steam to be used by Silicat as well. The IPP is to be constructed at an investment of $150 million by a consortium in which Eco holds 25% with partners from NASPAR of Assi Shelgi and Eyal Daisy (25%) and the owners of the Silicat plant the DSI company (50%).