Israel’s Delek Energy Systems, subsidiary of conglomerate Delek Group, has bought a Denver-based privately-held exploration and production company to strengthen its oil and gas capabilities in the US.

Israel’s Delek Energy Systems, subsidiary of conglomerate Delek Group, has bought a Denver-based privately-held exploration and production company to strengthen its oil and gas capabilities in the US.

The purchase of Elk Resources was funded with credit facilities totalling $100 million (£51 million) provided by the oil and gas team at Bank of Scotland Corporate.

Delek Energy plans to tap and release the value in Elk’s undeveloped oil and gas reserves by investing $90 million (£46 million) to 2010, which will triple oil and gas production at Elk’s sites over the next few years. Elk’s assets comprise three oil and gas fields in the hydrocarbon rich Uinta and San Juan basin in the Rocky Mountains.