Tomer Energy has the right to receive royalties at a rate of 1.125% before investment recovery and 4.875% after investment recovery in respect of oil and/or gas and/or other valuable materials to be produced and exploited from the interests of Delek Drilling at a rate of 22% (out of 100%), and from the interests of Tamar Petroleum at a rate of 9.25% (out of 100%), in the Tamar and Dalit leases, which include the “Tamar” and “Dalit” reservoirs.

General

The Tamar Reservoir, located some 90 km west of Haifa, has an overall depth of about 5,000 meters below sea level in waters that are 1,700 meters deep. The Reservoir covers an area of 100 square kilometers, and its layers reach up to 300 meters in thickness.

The natural gas in the Tamar Reservoir is produced through six unique production wells, built in such a way as to allow production from the Reservoir of up to 1.1 BCF of natural gas daily.

A mere four years after the January 2009 discovery of the Tamar Reservoir, gas started to flow from it at the end of March 2013.

The partners in the Tamar Reservoir are Isramco Negev 2 (28.75%), Noble Energy (25%), Delek Drilling (22%), Tamar Petroleum (16.75%), Dor Gas (4%) and Everest (3.5%).

Tamar – a reservoir of world-class quality

The Tamar development system has been built so as to produce redundancy and system back-up to enable stable production and flow over the years. According to an independent reserve evaluation conducted by NSAI, the natural gas reserve estimate for the Tamar Reservoir is roughly 297 BCM.

Click here to access the company’s most recent reserve report for the Tamar Reservoir, released by the company in March 2023.

The Tamar Reservoir, in terms of the quality of its gas, is located high in global rankings since it is a reservoir containing dry gas (approx. 99% methane), with high levels of porosity and permeability as well as high connectivity between the parts of the Reservoir. Furthermore, the Reservoir was developed to allow the Israeli market continuous supply with minimal breakdowns, and indeed the Reservoir operates at an availability of about 99.98%, the highest level on any global scale.

Investment in Tamar Reservoir has clear advantages, foremost of which is its stable cash flow. The increase in demand for natural gas in the Israeli economy and in export markets has led to continuous cash flow growth. According to forecasts, demand for natural gas in the Israeli economy is expected to continue to increase considerably. Furthermore, most of the contracts for the supply of natural gas from Tamar Reservoir are long-term, and in each of the natural gas sales agreements, customers committed to purchasing or paying for a minimal annual quantity of natural gas (Take or Pay).

The Tamar Partners supply natural gas to a broad variety of customers, including Israel Electric Corporation, industrial customers, independent power producers, companies marketing natural gas, and condensate to the Paz Ashdod Refinery. The Tamar Partners also exports gas to Egypt and Jordan.