Avner Oil and Delek Drilling still need permission from the Cypriot government to exercise their 30% option to Block 12.
Yitzhak Tshuva-controlled Delek Group Ltd. (TASE: DLEKG) units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) have received a precedent-setting provisional license to invest in Cypriot oil and gas exploration projects. The two companies have an option to buy 15% each of Cypriot offshore Block 12 concession from Noble Energy Inc. (NYSE: NBL). Noble Energy received the concession in 2008.
The Cypriot government will have to give Avner and Delek Drilling permission to exercise their option to the concession.
The Israeli authorities have banned Avner and Delek Drilling from investing in foreign projects, due to concern that their controlling shareholders will abuse the difference between their knowledge and other investors' knowledge about developments in foreign markets. For this reason, the companies' permit is provisional and limited to Cyprus.
Published by Globes [online], Israel business news - www.globes-online.com - on September 19, 2011
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