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
Crescent, SilverBow Shareholders OK $2.1B Merger, Eye Closing July 30
2024-07-29 - Shareholders for Crescent Energy and SilverBow Resources signed off on their $2.1 billion merger—expected to create one of the largest E&Ps in the Eagle Ford Shale.
CNX Touts Deep Utica Wells Results as Deferrals Hit Production
2024-07-26 - Appalachia producer CNX Resources is reporting promising early results from two of three deep Utica Shale wells brought online in central Pennsylvania last quarter.
EQT: Non-op Marcellus Assets Pique International Buyers’ Interest
2024-07-24 - EQT Corp. is marketing interests in its upstream and midstream assets in Appalachia as the company reduces debt after a $5.45 billion acquisition of Equitrans Midstream.
Permian Prowl: Exploratory Drilling, Permitting Up for Permian Barnett Wells
2024-07-24 - In the never-ending hunt for Permian drilling locations, a growing number of operators are testing wells in less-developed formations and the basin’s extensional fringes.