IO Monthly Update - January 2014
  Industry Updates

After more than a year, 'Leviathan' partners expect to sign the deal with 'Woodside'  
According to 'Globes' magazine, Woodside will pay $3 billion for 30% of the Leviathan gas field.While under the original terms the deal was worth $2.5 billion, the newly expected deal will be worth $3 billion, valuing the    Leviathan field at over $9 billion. The deal is expected to be signed in the first week of February. 

'Tamar' partners announce that the 'Tamar SW' reservoir contains double than the initial estimation 

According to NSAI, Tamar SW contains approximately 1 TCF of natural gas, double the initial estimate announced at the beginning of December 2013. The updated estimation increases the total amount of gas in    
Tamar reservoirs by 15%. The increase may lead to a shift in the decision regarding the export from Tamar by the FLNG facility. Previously, the partners announced that 'Gazprom' signed in MOU on purchasing liquefied       gas from the 'Tamar' partners.

Ratio in negotiations to join 'Sara' and 'Mira' licenses

Ratio Oil Exploration (1992) Limited Partnership entered negotiations with one of the partners in 'Sara' and 'Mira' licenses. In 2012, one exploration drill was carried out in each of the licenses that revealed a negligible amount of gas in each of the target strata.

Energy activities from Delek group is expected to be split off by June 2014     

'Delek Group' is in advanced negotiations to sign an agreement with Goldman Sachs and Wells Fargo, which will serve as 
underwriters and lead to split of the Energy activities from the group, probably including the issue of the energy activities in the London Stock Exchange.

 Regulatory Developments

Antitrust Authority orders 'Delek' and 'Noble' to sell 'Karish' and 'Tanin'  

According to 'Globes', the settlement agreement being formulated between the Antitrust Commissioner and 'Delek Group' and 'Noble Energy' regarding the binding arrangement will force the Delek Group and Noble Energy to sell the exploration licenses, 'Alon A' and 'Alon C', where 'Tanin' and 'Karish' discoveries are located.

 Regional Events

 Cyprus seeks to purchase gas for a period of up to 10 years

Cyprus's Natural Gas Public Company issued a $3 billion tender to supply 0.6-0.8 BCM of natural gas annually to the country for the next 10 years, beginning in January 1st 2016. The Israeli suppliers have a strong chance of winning this tender as they can meet Cyprus's expectations.

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 February 1st 2014.