Gas Subsidiaries Update

The following updates are based on information released by Delek Group gas subsidiaries, Delek Energy Systems Ltd., Avner Oil & Exploration L.P and Delek Drilling L.P. All financial and business information is given only for the convenience of the reader. The only official financial and business information, is that which is included in the officially published immediate reports and financial reports of Delek Group and its gas subsidiaries, to the Israeli Securities Authority and the Tel Aviv Stock Exchange, in Hebrew. In the event of any conflict between financial and business information given on this site and the Hebrew published immediate reports, the Hebrew published immediate reports shall prevail. More on Delek Group's disclaimer.

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Discovery of Indicators of Petroleum at the "Karish 1" Exploration Well

Tel Aviv, May 16, 2013. Delek Group (TASE: DLEKG, OTCQX: DGRLY) is pleased to announce that its subsidiary partnerships, Delek Drilling LP and Avner Oil Exploration LP, published the below immediately report, with regard to the discovery of indicators of petroleum at "Karish 1" in the license area of Alon C/366.

“Pursuant to what is stated in section 7.7.10 of the Periodic Report dated 31.12.2012, which was published by the Partnership on 15.03.2013 (ref. no. 2013-01-006325 and 2013-01-006325) and in accordance with the information provided to the Partnership by Noble Energy Mediterranean Ltd., the Operator of the exploration well "Karish 1" in the license area of Alon C/366 ("the Operator" and "Karish 1 Well" or "the Well", respectively) the Partnership announces that the Karish 1 Well has reached a final depth of 4,790 meters below sea level (including the depth of the water). The Partnership has concluded that significant signs of petroleum (natural gas) have been discovered, based upon reports from the Operator, which in turn are based on tests carried out during the drilling .

Additional details follow concerning the well :

  1. Name of well: "Karish 1 "
  2. Date of discovery of signs of petroleum: May 15, 2013
  3. Initial depth (target roof): Approximately 4,315 meters below sea level.
  4. Net depth of strata: Depth of natural gas-bearing strata (net) approximately 60 meters [1] .
  5. The type of tests (type of logs) carried out as the basis for the information concerning the existence of significant indicators of petroleum: The Operator conducted logging while drilling, from which it emerged that the well's target strata contain natural gas. At this point stabilization and preservation works have been carried out on the borehole in order to facilitate a logging wireline, including, according to the plans, electrical, seismic and magnetic tests and tests of the natural gas composition, the rocks and liquids in the reservoir. It should be pointed out that wireline logging is more comprehensive and accurate than logging while drilling. Therefore, the results are likely to lead to a significant change in the aforementioned estimates, including the estimated net depth of the strata stated above .
  6. Type of petroleum: Natural gas
  7. The findings that led the Company to be satisfied and to accept the reliability of the indicators: As stated above, the Operator conducted various tests during the drilling, whose results indicate the apparent existence of natural gas in the target strata. These initial results and their analysis were made known by the Operator to the Partnership, and satisfied the Partnership as to the existence of significant indicators of petroleum at the well.

Warning: It is stipulated that production tests have not yet been carried out at the well [2]. Indicators of natural gas do not testify to a discovery in its meaning in the PRMS rules or of a discovery in its meaning in the Petroleum Law, 1952 .

Forward looking statement - the above assessments concerning the discovery of significant petroleum indicators at the well, and other aspects concerning the well, are based upon information, assessments and estimates that have been received from the Operator, including based on the tests carried out as stated above, and these are forecast information. The above assessments and estimates are based upon initial information obtained while work was carried out at the well. At this point these are assessments and estimates only, for which there can be no certainty. The above assessments and estimates are likely to be updated as additional information is obtained, including the results of the continuing analysis of the drilling, and/or from further logging and/or carrying out assessment boreholes (if such shall be conducted), and/or as a result of all the factors related to the exploration and production projects for oil and natural gas.

The Partners in the "Karish 1" Well and their holdings :
Noble Energy Mediterranean Ltd. - 47.059%
Delek Drilling Limited Partnership - 26.4705%
Avner Oil Exploration - Limited Partnership - 26.4705%


This is a convenience translation of the recent HEBREW immediate report issued to the Tel Aviv Stock Exchange by the Company on May 15, 2013.

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 33 TCF .

In addition, Delek has built an extensive network of global downstream assets, including 1,900 gas stations and convenience stores in the U.S., Europe and Israel, and petroleum refineries in the U.S. Delek also holds significant interests in leading water desalination, power generation, insurance and automotive companies .

In 2012, the Company's revenues were NIS 72 billion ($ 19 billion). Delek Group's shares are traded on the Tel Aviv Stock Exchange (TASE: DLEKG) as part of the TA25 Index.


Dalia Black / Dina Vince
Investor Relations
Delek Group
Tel: +972 9 863 8444

Ehud Helft / Kenny Green
International Investor Relations
CCG Investor Relations
Tel: (US) 1 646 201 9246


[1] It is pointed out that this is an initial assessment, based upon the logs during drilling.

[2] It is stipulated that it is not planned to carry out production tests at the well.

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