Israel natgas market value to rise by $8 bln -Delek

* Total revenues from site put at $38 billion

* Energy shares lifted by new appraisal

By Joseph Nasr

JERUSALEM, July 8 (Reuters) - Newly discovered natural gas deposits off Israel's Mediterranean coast have a market value of $8 billion, a partner in a group leading explorations there said on Wednesday.

"This will result in an additional $8 billion," Yitzhak Tshuva, whose Delek Group (DELKG.TA) has a 31 percent stake in the project through two units, told Army Radio.

Tshuva said a study suggested that more natural gas could be found, adding that drilling at the Tamar well would continue.

Group leader Noble Energy (NBL.N) on Tuesday raised the gross mean resource estimate for Tamar to 6.3 trillion cubic feet (178 billion cubic metres), 26 percent up on an earlier estimate. [ID:nWNAB5053].

Noble said the results had considerably reduced uncertainty about the structure's resources, estimates of which are now more than double the original pre-drilling figures.

Clal Finance brokerage estimated potential revenues from the new deposits at $7.5 billion, saying in a note to clients that total revenues from the site could top $38 billion.

Noble and its Israeli partners have been drilling at three sites off Israel's shore. The Tamar-1 and Tamar-2 sites are located some 90 km (56 miles) off the northern port of Haifa. Dalit is situated off the country's southern coast.

News of the estimate appraisal lifted energy shares in a country anxious to reduce its dependency on foreign fuel.

"With drilling at Tamar and Dalit, we have already confirmed a very substantial amount of natural gas resources, perhaps over two decades of future supply based on projected needs," said Noble Chairman and CEO Charles Davidson in a statement.

He added that Noble was looking to bring the first phase of production to Israeli shores by 2012.

Noble owns 36 percent of the Tamar sites while Isramco Negev (ISRAp.TA) owns 28.75 percent, and Avner Oil Exploration (AVNRp.TA) and Delek Drilling (DEDRp.TA) 15.625 percent each.

Dor Gas Exploration owns 4 percent. Delek and Avner are units of conglomerate Delek Group.

Analysts initially estimated the value of natural gas found at Tamar in January at $26 billion, and Israel's Petroleum Commissioner Yaakov Mimran said the early findings suggested Israel's demand could be met for at least 15 years.

Shares in Delek Drilling were up 4.1 percent in midday Tel Aviv trading, while shares in Isramco were up 1.9 percent and Avner's were up 2 percent. Delek Group was up 1.3 percent.

Israeli brokerages raised their target prices for Delek Group and its subsidiaries after news of the new deposits.

"The new parameters decreased uncertainty about the estimates and contributed to the estimate upgrades," analysts at the Tel Aviv brokerage of Psagot wrote in a note.

Israel is also receiving natural gas from Egypt under a 20-year deal signed in 2005. ($1 = 3.95 shekels)