|Decision regarding the Drilling of the Leviathan-7 Development and Production Well|
| Tel Aviv, March 14, 2017. Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) announces that below is an Immediate Report published by each of Avner Oil Exploration Limited Partnership and Delek Drilling Limited Partnership (jointly “the Partnerships”) concerning the decision to drill the Leviathan-7 development and production well.|
Further to the provisions of Section 7.5.9(a)(5) of the Partnerships’ periodic reports as of December 31, 2015, as released on March 28, 2016 (the “Periodic Reports”) regarding the updated development plan for the Leviathan reservoir which is located in the area of the I/14 Leviathan South and I/15 Leviathan North leases (the “Development Plan” and the “Leviathan Project” or the “Leviathan Reservoir”, respectively), of the immediate reports of June 2, 2016 regarding approval of the Development Plan by the Petroleum Commissioner at the Ministry of National Infrastructures, Energy and Water Resources (the “Commissioner”), of the immediate reports of December 18, 2016 regarding the decision of the Leviathan partners to drill the “Leviathan-5” appraisal and production well (the “Leviathan-5 Well”), and the immediate reports of February 23, 2017 regarding the adoption of a final investment decision (FID) for the development of the Leviathan Reservoir, the Partnerships respectfully announce that on March 13, 2017, the Leviathan partners made a decision regarding the drilling of the “Leviathan-7” development and production well in the area of the I/14 Leviathan South lease (the “Leviathan-7 Well” or the “Well”).
Set forth below are further details regarding the Well:
Noble Energy Mediterranean Ltd. (“Noble” or the “Operator”) recommended that the Partnership drill at this time an additional development and production well in the Leviathan Reservoir, as an integral part of the Leviathan Reservoir production wells, in the framework of the Development Plan. By drilling the Leviathan-7 Well in a batch with the Leviathan-5 Well, it will be possible to streamline and reduce the cost of the drilling of these two wells.
Warning regarding forward-looking information – The budget and the timetables for the drilling of the Well, including the order of the drilling of the Leviathan-5 and Leviathan-7 wells, receipt of the approvals for the drilling thereof, and the possibility of its completion and its connection to the production system of the Leviathan Project in the framework of the Development Plan, are based on estimates and conjectures received, inter alia, from the Operator, and which are forward-looking information, as defined in the Securities Law, 5728-1968. The said estimates and conjectures constitute professional estimates and conjectures, in respect of which there is no certainty and they may subsequently be updated as the actions in the Well progress. The above estimates are based, inter alia, on geological, geophysical, techno engineering and other information, accumulated, inter alia, from the seismic survey performed in the area of the Leviathan leases, and may be materially different from the said estimates and conjectures, inter alia as a result of geological conditions and/or operating and technical conditions and/or regulatory changes and/or the Leviathan Reservoir’s actual performance. The said estimates and conjectures may be updated insofar as additional information is accumulated and/or as a result of a gamut of factors relating to petroleum and natural gas exploration and production projects, including as a result of the performance of the actions in the Well and their results, and as a result of operating conditions and/or market conditions and/or regulatory conditions.
The partners in the Leviathan Reservoir and their holding rates are as follows:
This is a convenience translation of the original HEBREW immediate report issued to the Tel Aviv Stock Exchange by the Company on March 14, 2017.
About The Delek Group
The Delek Group, Israel's dominant integrated energy company, is the pioneering leader of the natural gas exploration and production activities that are transforming the Eastern Mediterranean's Levant Basin into one of the energy industry's most promising emerging regions. Having discovered Tamar and Leviathan, two of the world's largest natural gas finds since 2000, Delek and its partners are now developing a balanced, world-class portfolio of exploration, development and production assets with total gross natural gas resources discovered since 2009 of approximately 40 TCF.