Delek (PK) (USOTC:DLKGF)
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Delek Group Ltd. (DLEKG.TV) said Thursday that it has made short-term loans to two of its energy subsidiaries so they can continue developing two natural gas fields offshore Israel while appealing a government decision barring them from taking more credit from the lender HSBC.

Delek Group, an Israeli holding group, said it loaned its subsidiaries Avner Oil Exploration Ltd. Partnership (AVNRL.TV) $10 million and Delek Drilling Ltd. Partnership (DEDRL.TV) $15 million so that they can continue work on the Tamar and Leviathan gas fields.

The loans are scheduled to be repaid in 45 days and carry annual interest of the London interbank overnight rate plus 3.6%, Delek Group said.

Delek Group's loan follows a government decision earlier this week to prevent the two energy subsidiaries from giving HSBC a lien on rights to the Leviathan field in order to obtain an additional $500 million loan to develop the Tamar field.

The government's petroleum council rejected the subsidaries' request saying it was not comfortable with a non-developed gas field serving as collateral on a loan.

The companies are appealing the government's decision, saying they have demonstrated their ability to pay back loans in the past and that they urgently need the money so that Tamar can continue on schedule and begin producing natural gas by the end of this year.

The Tamar field is estimated to contain up to 9 trillion cubic feet of natural gas, and the Leviathan field 16 trillion cubic feet. Tamar is on track to begin production at the end of this year and Leviathan in 2017.

At 1310 GMT, shares of Avner were up 0.002 shekels, or 0.89%, at ILS2.70 ($0.71); shares of Delek Drilling were up ILS0.25, or 1.69%, at ILS15.51; shares of Delek Group were up ILS7.60, or 0.95%, at ILS805.60, in a higher Tel Aviv market.

-By Sara Toth Stub, contributing to Dow Jones Newswires, saratoth@gmail.com