License 367 / Alon D - Update - DELEK GROUP

Tel Aviv, August 22, 2017

Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) announces that below is an Immediate Report by Delek Drilling Limited Partnership (“the Partnership”) concerning the decision of the Minister of Energy in respect of the Alon D license.

Pursuant to what was stated in section 7.10.2 of the Partnership’s Annual Report to December 31, 2016 that was published on March 23, 2017, concerning an appeal submitted by the partners in License 367 / Alon D (“The License” or “Alon D License”) to the Minister of National Infrastructure, Energy and Water (“The Appeal” and “Minister of Energy”) on February 25, 2016 concerning the decision of the Petroleum Commissioner at the Ministry of National Infrastructure, Energy and Water (“The Commissioner”) on February 16, 2016, that the Alon D License would expire on March 1, 2016 and that non-receipt of the approvals required in law for drilling from other authorities was not grounds to extend the Alon D License beyond the period stipulated in the Petroleum Law, 1952, the Partnership announces that on August 21, 2017 the Minister of Energy informed the partners in the Alon D License of his decision, whereby the License would continue to be valid for 32 months from the date of the said decision of the Minister of Energy, subject to the terms below, to which the partners in the License must comply within a reasonable time:

The partners in the License will clarify to the Commissioner, in writing and without delay, that they acknowledge that at the moment there are still circumstances in the area preventing drilling, which are applicable until further notice, and that in the future there is no intention to recognize additional future obstacles in the area as grounds that will oblige further freezing of the License.

The partners will undertake to carry out an environmental survey within 18 months, in order to adapt the terms of the ongoing License to the standards acceptable in 2017.

The partners will ratify again their commitment to drilling, within a reasonable time in the circumstances, from the moment that the go ahead is given to carry out drilling.

Partners in the Alon D License and their percentage holdings are as follows:

1. Noble Energy Mediterranean Ltd. 47.059%
2. Delek Drilling Limited Partnership 52.941%

This is a convenience translation of the original HEBREW immediate report issued to the Tel Aviv Stock Exchange by the Company on August 22, 2017.

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Two-year ENI-KOGAS extension signed | Cyprus Mail

January 19, 2016

The government on Tuesday signed a two-year extension with the ENI-KOGAS consortium for exploration of blocks 2, 3 and 9 within the island’s exclusive economic zone (EEZ), it announced.

“Within the next two years, the consortium will conclude studies aiming at better evaluating and recalibrating the geological model of the region, in order to identify prospects necessary to complete its drilling obligations,” an official statement said.

“This development is especially important, as it reaffirms and advances Cyprus’ energy prospects during a period in which the international oil and gas industry is experiencing challenging conditions.”

Υπογράφηκε διετής παράταση με την κοινοπραξία Eni/Kogas για τα ερευνητικά Τεμάχια 2, 3 και 9 στην ΑΟΖ της Κύπρου | Cyprus PIO

19/01/2016

Το Υπουργείο Ενέργειας, Εμπορίου, Βιομηχανίας και Τουρισμού ανακοινώνει ότι έχει υπογραφεί, μεταξύ της Κυπριακής Δημοκρατίας και της κοινοπραξίας Eni/Kogas, διετής παράταση της αρχικής περιόδου έρευνας για τα ερευνητικά Τεμάχια 2, 3 και 9, της Αποκλειστικής Οικονομικής Ζώνης (ΑΟΖ) της Κυπριακής Δημοκρατίας.

Η κοινοπραξία, η οποία διανύει την αρχική περίοδο της τριετούς Άδειας Έρευνας Υδρογονανθράκων που λήγει στις 23 Ιανουαρίου 2016, αιτήθηκε και έλαβε κατόπιν έγκρισης του Υπουργικού Συμβουλίου τη διετή παράταση και για τα τρία ερευνητικά Τεμάχια, στα οποία κατέχει τις Άδειες Έρευνας. Εντός του χρονοδιαγράμματος των επόμενων δύο χρόνων, η κοινοπραξία θα ολοκληρώσει μελέτες για την καλύτερη κατανόηση και αναθεώρηση του γεωλογικού μοντέλου της περιοχής, με σκοπό τον εντοπισμό στόχων προς υλοποίηση των γεωτρητικών της υποχρεώσεων.

Eni extends gas agreement in Cyprus | Forbes

DEC 30, 2015, Christopher Coats , CONTRIBUTOR

Full of confidence from a recent offshore discovery in the Eastern Mediterranean, Italy’s Eni has announced the extension of an exploration agreement with Cyprus, extending the company’s footprint in the region.

According to local media reports, the Cypriot energy minister announced that it will extend its agreement with Eni and its South Korean partner KOGAS to explore offshore potential for natural gas of the country’s southern coastline.

The extension would take the partnership into at least early 2018, with exploratory drilling expected to begin in 2017.

For Eni, the partnership expands the reach of the Italian energy firm in the region just months after announcing that they had discovered what it feels could be the largest in recent history. The “super giant” gas discovery holds an estimated 30 trillion cubic feet of gas, making it the biggest find in the Mediterranean and possibly transforming the entire energy landscape of the region.

For Eni, a find of that size was expected to help justify its efforts in the region, providing with significant potential revenues for both sale into the Egyptian market and the export market. The extension of the Cypriot agreement supports that possibility.

For Cyprus, the announcement reiterates the country’s efforts to establish itself as a production and transport leader in the region, further expanding its collaborations with foreign partners. Earlier this year, Cyprus announced that they had also extended an agreement with France’s Total.

Earlier this year, Eni also came out in support of Cyprus being viewed as a likely strategic energy hub and “conduit for future Egyptian natural gas supplies”, tying together the efforts of the company’s regional efforts.

“Eni believes in the significant synergies of joint development in the entire area of the eastern Mediterranean,” the company said in a statement, according to UPI. “This area could be of crucial strategic importance as a gas hub for the whole region and also makes an important contribution to European energy security.”

SOURCE

Italy's Eni Renews Deal for Oil, Gas Search Off Cyprus | New York Times

By THE ASSOCIATED PRESSDEC. 28, 2015, 8:00 A.M. E.S.T.

NICOSIA, Cyprus — The Cyprus government has renewed an agreement with Italian energy company Eni and its South Korean partner KOGAS to search for oil and gas in waters off the Mediterranean island's southern coast.

Eni said in August that it discovered off Egypt's coast what it called the biggest gas field ever found in the Mediterranean sea.

Cyprus Energy Minister Yiorgos Lakkotrypis says Eni's license to search in three areas has been extended to February 2018.

He said after a Cabinet meeting Monday exploratory drilling could begin sometime in 2017, but a consortium study is still in its preliminary stage.

Earlier this month, French energy company Total also renewed its license to search for oil and gas off Cyprus for two more years.

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same story from different source

ENI licence renewed | in-cyprus.com (Cyprus Weekly)
incyprus — 28/12/2015

The Cabinet on Monday ratified a two-year extension of Italian and South Korean consortium ENI-KOGAS’ licence to explore for hydrocarbons on Cyprus’ exclusive economic zone (EEZ).

Speaking to reporters after the Cabinet meeting which was held at the presidential retreat in Troodos, Energy Minister George Lakkotrypis said the decision provides for a two-year extension, until February 2018, in order for ENI to re-evaluate the energy potential, especially now, following the developments in the Egyptian EEZ with the discovery of the Zohr deposit.”

The company had asked for an extension earlier in 2015.

Once the proper legal framework to satisfy the request was found, the Ministry of Energy was given the go-ahead to begin negotiating with the consortium.

Lakkotrypis said the extension concerns exploration licences in blocks 2, 3 and 9 of Cyprus’ EEZ.

According to the minister, ENI has a large team working on the geological models of blocks 2, 3 and 9,  and “I expect and hope that we will have the first results of this reassessment by the end of January.”

“Based on the preliminary plan that we received a few months ago, a new round of drilling is expected to begin mid-2017,” the minister said.

SOURCE

Cabinet extends Total’s exploration licence | Cyprus Mail

Cabinet extends Total’s exploration licence

DECEMBER 3RD, 2015

The cabinet on Thursday approved the extension of energy giant Total’s exploration license in offshore Block 11 for two years.

Deputy government spokesman Victoras Papadopoulos said the Cabinet also approved the size and shape of the new exploration area in Block 11.

“This means that it was also agreed the percentage that Total will return, under the agreements signed with the Republic of Cyprus in the event of renewal of the contract,” he added.

Total’s licence expires in February 2016. 

The new target lies in carbonate layers in the bedrock, taking the cue from ENI, which back in August discovered a massive natural gas reservoir in carbonate layers within Egyptian waters.

Previously, Total had deployed a different geological model, tracking sand reservoirs. Back in January, the company was all but ready to pull out of Cyprus having failed to identify targets, but was persuaded by the government to keep its operations going.

Total had relinquished Block 10 without drilling any wells.

The company was released from its original two-well drilling commitment – across two adjacent blocks, 10 and 11, lying on the maritime border with Egypt – but maintained exploration rights in Block 11, agreeing to continue to evaluate 3D seismic data in a bid to locate a possible target.



Source: http://cyprus-mail.com/2015/12/03/cabinet/