Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) announces that further to what was stated in sections 1.7.5(9)(1)A(5-6) of the Company’s Annual Report to December 31, 2015 that were published on March 31, 2016 (ref. no. 2016-01-020628), attached is an Immediate Report just submitted by each of Delek Drilling Limited Partnership and Avner Oil Exploration Limited Partnership (“the Partnerships”) concerning approval by the Petroleum Commissioner of the development plan for the Leviathan field for 21 BCM annually.

In accordance with leases I/14 for Leviathan North and I/15 for Leviathan South, on June 2, 2016 the Commissioner approved the development plan in a maximum amount of 21 BCM per year, as submitted by the Leviathan Partners as stated in the Annual Report.

In the approval letter the Commissioner stipulated the processes for implementation of the development plan, and noted inter alia that at this stage, in the light of data of the Ministry of Infrastructures and based on the expert opinion provided to the Ministry by an international company, the estimated amount of natural gas that would be produced from the Leviathan field was 17.6 TCF, based on the production plan submitted (“Estimated Production Amount”). The Commissioner also noted that following receipt of additional data and in particular after drilling Leviathan 5, and after receipt of data obtained during production from the field, the Estimated Production Amount would be updated, inter alia in order to calculate the export permits, as would be required.

It should be emphasized that in the opinion of the Partnerships, the Estimated Production Amount is adequate for full implementation of the development plan in the amount of 21 BCM per year as approved, and adequate for full implementation of the export agreements applicable to a development plan of this scope.

It was also pointed out that there has been no change in the assessment of natural gas and condensate in the Leviathan reservoir, based on the resources report drawn up by Netherland Sewell and Associates Inc. ( “NSAI”), published and included in the Annual Report, according to which the resources of the Leviathan field in the best estimate were assessed at 21.9 TCF. It is noted that NSAI is an independent company specializing in natural resources assessments around the world and the leading assessor for publicly traded energy companies in the USA for publication for the public. The Resources Report was drawn up in accordance with the rules of the Petroleum Resources Management System (SPE-PRMS) and as per the Securities Regulations (Periodic and Immediate Reports), 1970.
 

Partners in the Leviathan Project and their percentage holdings are as follows:
Noble Energy Mediterranean Ltd.     39.660%
Avner Oil Exploration – Limited Partnership   22.670%
Delek Drilling Limited Partnership    22.670%
Ratio Oil Exploration (1992), Limited Partnership  15.000%

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.

In addition, Delek Group has a number of assets in downstream energy, water desalination, and in the finance sector.

For more information, please visit: www.delek-group.com