IO Monthly Update - April 2018
Israel Opportunity's Latest Announcements
  • Petroleum Commissioner to Approve Extension and Update to the Work Plan of "Royee" License

On April 14 2018, the Petroleum Commissioner at the Ministry of Energy informed Israel Opportunity – Energy Resources, LP (the "Partnership") and the other partners to the license, that the Royee License will be extended until July 14 2018, under an updated work plan as requested by the partners. The work plan includes signing an agreement with a drilling contractor and transferring it to the Commissioner by July 1 2018, and spud date by January 15, 2019.
The Partnership's work interest in the license is 10%.
Regional Events
  • Egyptian Media Reports Intentions to Enter an Agreement to Construct Egypt-Cyprus Pipeline
According to Bizportal report of May 1 2018, Egyptian media purports that Egypt authorized the agreement to construct a pipeline from Egypt to Cypriot "Aphrodite" gas field. It was further reported by Egypt Oil&Gas Newspaper on April 24 2018, that an MOU for a strategic energy partnership was signed between Egypt and the EU. The EU Commissioner for Climate Action and Energy, Miguel Arias Cañete, who signed the MoU during a visit to Egypt, added in a press conference that "there is a possibility that European financial institutions will provide $4.64 billion in financial support to Egyptian projects."
  • Israel Could Lose NIS 3 Billion ($840m) if Cyprus Develops Aphrodite Field without Agreement
A new research by Dr. Joshua Hoffer, prepared for the partners to the Ishai field offshore Israel, has found that gas production at the Ishai field, which is part of the cross-border Aphrodite field, is likely to yield for Israel a cash flow of $840 million in real value not capitalized, Globes reported on May 3 2018. The report adds that Israel is likely to lose the amount should Cyprus develops and exports natural gas from the field without an agreement. Globes further identified a major development after seven years of negotiations between the countries, as the parties may resort to international arbitration. In the wake of the gas talks, The Marker reported on May 1 2018 that Israeli Prime Minister plans to visit Cyprus in the following week, with an aim to settle the dispute. The Prime Minister will also participate in a trilateral meeting with Cyprus and Greece' heads of states to promote the joint pipeline project from Israel to Europe.
Industry Updates
  • Italian Edison Launches Spin-off of Its Oil & Gas Division
According to Reuters report on April 4 2018, Edison is preparing the sale of its oil and gas unit, the latest power producer to abandon fossil fuels to focus on its retail business, as four industry sources said. Edison has selected investment banks Rothschild and Perella Weinberg to organize an auction for the exploration and production division, which could be valued at $2 billion to $3 billion. Edison oil and gas activity in the past decade has grown sharply, and includes assets in Israel and Egypt. Reuters sources report that Edison's Egyptian assets, which include the Abu Qir concession and more than 250 million barrels of oil equivalent in reserves, are considered one of the most attractive parts of the portfolio.

The materials and information included in this newsletter are provided as a service to you by Israel Opportunity Oil & Gas Exploration Ltd. ("the Company") and the Company or any of its subsidiaries are not responsible for the accuracy and completeness of information provided herein. The information provided herein is not advice of any kind, and should not be treated as such. The Company will not be liable to you in respect of any special, indirect or consequential loss or damage with respect to relying on the information herein. If you wish to be omitted from or added to the distribution list please send an email to