IO Monthly Update - December 2013
 
Israel Opportunity Announcements

  'Oz' partners request that the Petroleum Commissioner postpone the dates of the work program milestones
       The Partnership, together with 'Oz' partners, requested that the Petroleum Commissioner at the Ministry of Energy and Water
       Resources postpone the deadlines for the work program's milestones, including the postponement of the submission of the
       Resources Report according to the PRMSthe postponement of the spud date and the extension of the license accordingly. The
       Commissioner's response has not yet been received and we will inform you about the new dates upon its receipt.



Industry Updates
 

  'Leviathan' partners announce first export contract
       'Leviathan' partners signed the first export contract with the Palestine Power Generation Company plc for the offshore natural gas
       field. A contract of $1.2 billion for the export of 4.75 billion cubic meters of gas over a period of 20 years.


  Noble Energy announces 2013 highlights at the annual analyst conference: Great Oil Potential in the Eastern
     
Mediterranean region 
      Significant exploration potential remains in the Company's acreage position in the Eastern Mediterranean, with approximately 3
      billion barrels of gross unrisked oil potential in the deep Mesozoic play in both Cyprus and Israel and four trillion cubic feet gross of
      natural gas potential in Cyprus. Current plans involve a resumption of exploration drilling in the Eastern Mediterranean in late 2014
      or early 2015.


  Delek Group is examining splitting of its energy activities and concentrating them under new company to be listed overseas
       and/or in the Tel Aviv Stock Exchange
      The Delek Group is examining a restructuring of its business sometime during 2014 while splitting the energy activities from the
      group, intending to generate more value for the company and its shareholders. The energy activities will be concentrated under one
      company to be listed overseas, possibly London, and/or in the Tel Aviv Stock Exchange.

  'Givot Olam' to carry out a bypass at 'Meged 6' exploration drilling
      In order to complete the onshore drilling at 'Meged 6' and reach the final target at a total depth of 4498 meters, 'Givot Olam' will
      conduct a bypass drilling after its efforts to release the pipes that were trapped at a depth of 3860 meters in the beginning of
      December, failed. According to 'Givot Olam', the drilling would take additional three weeks at a total estimated cost of $2.7 million.


Regulatory Developments

 Israeli law will set the legal framework for offshore operations in Israel's Exclusive Economic Zone
     The agreement between Israel and Cyprus regarding their maritime border and Exclusive Economic Zones (EEZ) for offshore
      operations will be enshrined in Israeli law. A memorandum entitled "Maritime Zones Law" was distributed by the Ministry of
     Justice for public review. The preliminary memorandum includes a basic model for Knesset legislation to clarify the laws
     pertaining to maritime and EEZ. Its aim is to set the legal framework for offshore activities supervised and encouraged by the
     State of Israel. The main operations in this context are natural gas exploration and its production and oil exploration. The Law is
     being formulated in accordance with international law and the Convention of the Law on the Sea.




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. Please note that the above information is as of December 31 2013.