Israel's Energy Ministry says gas from the offshore Tamar field began flowing for the first time Saturday and would shortly reach a processing facility on Israel's coast .
Noble raises reserve estimates on Israel's Tamar gas field
Tamar's gross resource estimates were moved up to 10 trillion cubic feet from 9 trillion cubic feet, Noble said. The company operates the Tamar field, in which it holds a 36% stake. Other owners include Isramco Negev 2, Delek Drilling, and two companies.
The higher reserve estimate was largely expected, but "a bit ahead of schedule," analysts at Simmons & Co. said in a note to clients. They estimated share impact of increasing Tamar's resource potential is a $1 a share and thus increased their price target on Noble Energy stock to $148 from $147.
So far this year, Noble shares have gained 13%, compared with gains of 7.2% for energy stocks in the S&P 500 Index.
Production at Tamar started last week, lauded by Israel as an important step toward energy independence. The field is expected to provide 50% to 80% of Israel's natural-gas needs in the next 10 years.
Tamar was discovered in 2009 and holds an estimated 8.5 trillion cubic feet of gas. Another field, known as Leviathan, is estimated to hold some 16 trillion cubic feet and is expected to go online in 2016.
Israel has long relied on imports to meet most of its energy needs. The new gas finds are expected to supply Israel's domestic needs for decades and could transform the country into an energy exporter.
Noble Energy Inc. said its Tamar field off the coast of Israel is producing about 300 million cubic feet a day. The company also boosted reserve estimates for the natural-gas field.