Israel’s Delek Group said on Aug. 31 it is in talks with third parties about a possible merger of its North Sea energy operations, as it reported a second-quarter loss.
Merging Ithaca Energy with an international group would be part of a process of turning it into a public company traded in London, Delek said in a statement, adding it also expected to receive a cash payment under the plan being considered.
Several international investment banks were involved in the discussions, said Delek, which was hit hard by the global coronavirus crisis and fall in energy prices and has been selling off assets to appease worried bondholders.
Delek, which has stakes in Israel’s two largest offshore natural gas fields, said quarterly revenue in the local market net of royalties rose 64% to 498 million shekels ($148 million), mainly due to gas production starting from the Leviathan Field.
Revenue rose 177% at Ithaca, boosted by Delek’s November purchase of Chevron’s British North Sea oil and gas fields for $2 billion.
Delek said it posted a quarterly loss of 326 million shekels, mainly due to one-time accounting provisions, compared with a 190 million shekel profit a year earlier.
Revenue slipped to 1.94 billion shekels from 1.96 billion as a rise in revenue from the sale of gas and oil in Israel and in the North Sea was offset by lower revenue from fuel distribution and marketing operations in Israel due to the COVID-19 pandemic.
Recommended Reading
Marketed: Berlin Resources Anadarko Basin Opportunity
2024-05-13 - Berlin Resources LLC has retained EnergyNet for the sale of an Anadarko Basin opportunity in the Donita 35/2 AP #1H in Roger Mills County, Oklahoma.
Marketed: Wayfinder Resources, KSE Minerals Five Well Package in Oklahoma
2024-05-13 - Wayfinder Resources Operating and KSE Minerals has retained EnergyNet for the sale of a Mississippian/ Woodford opportunity in Canadian County, Oklahoma.
ADNOC Drilling Secures $1.7B Contract for Unconventionals Recovery
2024-05-13 - ADNOC Drilling’s new incorporated company, Turnwell Industries, will deliver a total of 144 unconventional wells, as per the contract.
NANO Nuclear Energy Closes $10.25MM IPO
2024-05-13 - NANO Nuclear began trading on the Nasdaq Capital Market under the symbol NNE on May 8.
Permian M&A: Oxy Shops Delaware Assets, Family Oil Cos. Stand Out
2024-05-10 - As operators scour the Permian Basin for M&A opportunities, they’re keeping an eye on a tepid divestiture market. Family-owned oil companies also stand out among the pack of private inventory holders remaining in the Permian, according to Enverus Intelligence Research.