Cancellation of Public Tender for the Supply of Natural Gas to Cyprus

Delek Group announces that attached is an Immediate Report published by each of Delek Drilling Limited Partnership and Avner Oil Exploration Limited Partnership concerning the decision by the Government gas company DEFA to cancel the tender for the supply of natural gas for electricity production in Cyprus.

Pursuant to what was stated in section 7.16.2 (b) of the Partnerships' Periodic Report to December 31, 2014 that was published on March 18, 2015 and to the Immediate Reports dated April 20, 2015, July 23, 2015, October 27, 2015 and December 20, 2015 concerning submission of a proposal for the supply of natural gas for electricity production in Cyprus using the pipeline from the Leviathan field as part of the tender, which the Government of Cyprus had published through the Government gas company DEFA ("the Tender" and "DEFA"), the Parnerships issues an update that on February 8, 2016, the Partnerships received notification from DEFA that since it had not arrived at agreements with some of the bidders in the Tender concerning the terms for the supply of natural gas, DEFA had decided to cancel the Tender.

It is stipulated that the Partnerships, together with the rest of the partners in Block 12 in Cyprus, in which the Aphrodite natural gas reservoir is located ("Aphrodite Reservoir"), are continuing contacts with DEFA for the supply of natural gas to Cyprus from the Aphrodite Reservoir.

Partners in the Leviathan Project and their percentage holdings are as follows:

- Noble Energy Mediterranean Ltd. 39.66%
- Avner Oil Exploration - Limited Partnership 22.67%
- Delek Drilling Limited Partnership 22.67%
- Ratio Oil Exploration (1992), Limited Partnership 15%

Partners in the Aphrodite Reservoir and their percentage holdings are as follows:

- Noble Energy International Ltd. 35%
Cyprus Limited. 35%
- Delek Drilling Limited Partnership 15%
- Avner Oil Exploration - Limited Partnership 15%