Happy Drilling George


Jewish billionaire Soros invests $6.5 million in Adira Energy


By: YOSEF TASTASSA  
Published: February 16th 2011
in Economics » Local

George Soros

George Soros

 

Business writers love to report about well known business peoples' decisions when they take a major position in a new investment. They do so because the likelihood of them succeeding is higher than the common person, and the writers ends up providing their readers with great investment advice. George Soros is one such business person.

 

George Soros is a Hungarian-American Jew who was born in 1930. He survived the Holocaust as a young boy and the circumstances of his life, combined with a brilliant and sharp mind, have helped make him one of the richest individuals on earth and what many consider the strongest influencer in world economics and business.

 

In 1997 Soros was accused by the Malaysian Prime-Minister, Muhammad Mahathir, of currency manipulation in South-East Asia which created an economic crisis on a local scale. Mahathir, who is a Muslim, used an Anti-Semitic comment when speaking of Soros: "It is a Jew who triggered the currency plunge". In 2006 Mahathir apologized for his inappropriate words.

 

Soros recently invested via Quantum Partners investment fund, $6.5 million in the Canadian corporation Adira which owns four licenses (see linked story) to explore oil and natural gas in Israel. If Adria was to find natural gas or oil on their sites, Soros' investment could easily surge to $100 million.

 

Israeli Energy sector

 

Hindsight is a wonderful thing. If an investor put their money into the Israeli energy sector three years ago he would have made a very lucrative investment. Most of us have heard of "Tamar" and "Leviathan", the oil and gas discoveries which are now worth billions of dollars and have dramatically changed Israel's economy and the Israeli geo-political situation.

 

The recent discoveries and geological surveys show that there are many other oil and gas fields in Israeli territory and its economic waters. The fact that Adira is holding four licenses of exploration in Israel and that its stock price is still quite low was an opportunity that Soros could not pass.

 

Canadian Adira

 

The corporation is traded in the TSX Venture under the symbol ADL. The latest news about Soros' investment shifted the Adira's shares prices from 65 cents to 90 cents over night. Yesterday's closure was 83 cents and the corporation's market value is nearly $75 million. Successful explorations in Israel may bring Adira's market value to a realistic figure of $1 billion.

 

Summary

 

The latest natural gas discoveries in Israel and the positive geological surveys leave no doubt that George Soros will not be the last well known financial influencer to invest in the Israeli energy sector. The question for the common investor is whether the last three year growth in the Israeli energy sector was the appetizer of the main course.  



Related articles: (Soros, Adira, Energy, Israel)


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