Israeli Leviathan Field Gas Estimates Up, Oil Down

The Israeli partners in the offshore Leviathan natural gas and oil field Sunday revised the estimated amount of gas reserves in the field upwards to 20 trillion cubic feet from 16 trillion cubic feet.

The partners also revised downwards the potential oil reserves to 600 million barrels from 3 billion. The revisions are due to new government requirements for how energy companies estimate the amount of potential oil and gas reserves.

Leviathan, also partly owned by Noble Energy Inc. (NBL), is expected to begin producing natural gas by 2016. It is one of several natural gas reserves to have been discovered offshore Israel in recent years. The other large reserve, Tamar, is expected to begin production later this year.

Noble Energy owns 39.66% of Leviathan, and Delek Group Ltd. (DLEKG.TV) units Avner Oil Exploration LP and Delek Drilling each own 22.67%. Ratio Oil Exploration LP (RATI.L.TV) owns 15%.

At 1317 GMT, shares of Delek Drilling were down 0.65 shekels ($0.17), or 4.2%, at ILS14.93; shares of Avner were down ILS0.09, or 3.6%, at ILS2.62; and shares of Ratio were down ILS0.038, or 10%, at ILS0.37, in a lower Tel Aviv market.

-By Sara Toth Stub, contributing to Dow Jones Newswires; [e-mail]