Summer Update - 2013
  
 Israel Opportunity Updates

  Israel Opportunity Energy Resources releases second quarter financial statement for 2013
       On August 14 2013, the Partnership published the Interim Financial Statement as at June 30, 2013 



Industry Updates
 
 'Shemen' announces significant signs of hydrocarbons indicated at Yam 3 license 
      On August 26th 2013, Caspian Drilling Company, the operator at 'Yam 3' license, located 16 kilometers west of Ashdod,
      informed Shemen Oil and Gas Resources Ltd. that significant signs of hydrocarbons were indicted (Condensate, natural
      gas and perhaps oil). Yet to be completed, the drilling reached the target strata at a depth of 5175 meters. The preliminary
      analysis of the information, collected during the drilling indicates that the thickness of the upper target strata is about 90 meters.
      As planned, the drilling in the prospect will continue until it reached the lower target strata, while performing additional tests.
      The Yam 3 well is located 16 kilometers west of Ashdod. The well's budget will total $150 million, not including production tests,
      which are estimated at $12 million.   

 The resource report published by 'Tamar' partners reveals the presence of an approximately additional  0.7 TCF (best
      estimate) of natural gas near 'Tamar' reservoir  
      The partners at Tamar license published a resource report, conducted by Netherland Swell and Associates Inc, revealing
      estimates resources at 'Tamar South-West' prospect of up to 0.7 TCF of natural gas with a probability of 90%. The 'Tamar
      South-West' is located mostly within the 'Tamar' license while overlapping into 'Eran's' license. The partners haven't yet
      determined whether the reservoir will be developed for commercial purposes. 

  'Karish 1' resources reports reveals that there are about 13 million barrels of condensates 
      On July 14th, the 'Karish' partners published the resources report conducted by Netherland Sewell & Associates Ltd. (NSAI).
      The report confirmed the preliminary estimates of up to 1.8 TCF of natural gas within 'Karish' reservoir. In addition, the report
      indicated that there are about 13 million barrels of condensate.   
 


Regulatory Developments 

 Gas Export hearing at the Supreme Court will take place on September 17th 2013
      A seven-member panel of judges will hear the appeals against the government's decision on June 23rd to permit the export
      of 40% of  the country's offshore natural gas reserves. In the meanwhile, the government was prohibited from implementing
      the export policy until a ruling is handed down. 
Several parliamentarians along with environmental and political organizations
      presented appeals to the Supreme Court arguing that the government decision is based on inaccurate information and that
      the 'Knesset' is required to approve the export policy and not the government. 




Regional Events

  Production tests on the Aphrodite A2 expected to start within the next few days
       Delek, Avner and Noble announced that production test in Aphrodite A2 are expected to start within the next few days and
       last about a month. According to the announcement, Noble Energy reported that the estimated production rate is about 60
       million cubic feet per day and the total cost is estimated $64 million.