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Developments in Israel's Oil and Gas Industry – May, 2013 

Israel Opportunity Updates 
  The Petroleum Commissioner approves updated work program in 'Oz' license
On May 22nd, 2013 Israel Opportunity received the approval of the Petroleum Commissioner for the updated work program of the 'Oz' license. The new spud date is set for August 31st, 2014, after the environmental approval of and the specific drilling plan.


Regional Events

  New Discovery: Approx. 1.8 TCF of natural gas found in 'Karish' license 
Noble Energy, which holds 47% of the rights in the "Karish" drill, reported that according to its estimates, "Karish" has 1.8 TCF of natural gas, valued at $1.5-2 billion, in the reservoir. The drilling in 'Karish' started in March 2013 at a cost of approx. $90 million and had reached its final depth of 4,790 meters.

  The partners of 'Sara' and 'Mira' Licenses receive extension of validity 
On May 27th the partners of 'Sara' and 'Mira' offshore licenses received an extension of validity of both licenses until July 13 2014. Consequently, the performance of the work program has been postponed and the new spud date is set to July 1st 2014

  "Yam-3" drill resumed
            'Shemen Oil' raises NIS 49 million
            The Partnership intended to raise approx. NIS 43 million during the issuing, enjoyed excessive demands of NIS 51 million,
            eventually raising NIS 49 million during issuing, according to minimum price. The issuing was to ensure the company needs
            in the execution of 'Yam-3' drill located 16 km offshore Ashdod.
            'Shemen Oil' will sell additional 5% of 'Yam 3' to Caspian Drilling Company
            'Shemen Oil' announced that it signed an agreement with Caspian Drilling Company (CDC), the license operator, which
            already holds 5% of the rights in 'Shemen' license,for the purchase of an additional 5% of the rights for $6  million – 

  Estimations: Ministry of Energy to reduce export of natural gas to 40%
According to recent publications, Minister of Energy and Water Resources Silvan Shalom might reduce the amount of natural gas permitted for export from 53% as agreed under certain limitations in 'Tzemach' committee, to 40%. Natural gas policies are expected to be determined over the next several weeks. 

  Evaluation drill in 'block 12' will start on June 9th
The partners, holding 30% of the Cyprus license 'Aphrodite' reported on the decision to perform an evaluation drill in the license together with the operator Noble Energy. According to the report, the 'Aphrodite 2' drill, located 160 km south of Limassol in Cyprus, is expected to start on June 9th and last approx. 4 months.