Results of drilling at the Canoe Prospect in the Gulf of Mexico

August 28, 2018 at 3:15 PM CEST

Tel Aviv, August 28, 2018. Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) announces, further to the Company’s Immediate Reports dated January 8, 2018 (ref. no. 2018-01-003307) and July 29, 2018 (ref. no. 2018-01-069795), and according to the information provided to the Company by the operator, GulfSlope Energy Inc. (“the Operator”), in accordance with section 12(B) of the Eleventh Addendum to the Securities Regulations (Periodic and Immediate Reports), 1970, as follows:

  1. The exploration drilling in shallow waters of the Canoe Prospect in Block VR-378 (“the Block”) has reached a final depth of 5,767 feet below sea level having penetrated the three main target layers of the prospect.
  2. Based on an initial analysis of the information from the drilling, including Logging While Drilling and laboratory tests of hydrocarbon samples from the drilling, layers of sand have been found with oil. It should be emphasized that the Operator has not made an announcement of a discovery.
  3. The Operator intends to examine the results of the drill together with existing seismic data in order to assess the Block’s and the well’s potential and its commercial feasibility. At this stage the Operator has recommended temporarily abandoning the drilling, in a manner that will allow an in-depth analysis of the results and also re-entry at a later stage, if the findings of the analysis justify it.
  4. The amount expended on the drilling up to and including the temporary abandonment is USD 7.5 million (100%).
  5. According to the work program, the platform is expected to complete the temporary abandoning works on the oil asset in the coming days and will then move to the Tau oil asset to carry out an exploratory drill to deep layers, as detailed in the Company’s Immediate Reports dated January 8, 2018 (ref. no. 2018-01-003307) and July 29, 2018 (ref. no. 2018-01-069795).

Percentage holdings in the rights in the area of the Tau and Canoe prospects:

Delek GOM Investments LLC 75%
GulfSlope Energy, Inc. 20%
Texas South Energy, Inc. 5%

This is a convenience translation of the original HEBREW immediate report issued to the Tel Aviv Stock Exchange by the Company on August 28, 2018.

About The Delek Group

Delek Group is an independent E&P and the pioneering visionary behind the development of the East Med. With major finds in the Levant Basin, including the Leviathan (21.4 TCF) and Tamar (11.2 TCF) reservoirs and others, Delek is leading the region’s development into a major natural gas export hub. In addition, Delek has embarked on an international expansion with a focus on high-potential opportunities in the North Sea and North America. Delek Group is one of Israel’s largest and most prominent companies with a consistent track record of growth. Its shares are traded on the Tel Aviv Stock Exchange (TASE:DLEKG) and are part of the TA 35 Index.
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Yonah Weisz
Head of Investor Relations
Delek Group Ltd.
Tel: +972 9 863 8443