Delek Group Announces Tanin 1 Pronounced Natural Gas Discovery
Delek Group (TASE: DLEKG, OTCQX: DGRLY) ("the Company") announced that the following report was published by its Delek Drilling - Limited Partnership and Avner Oil Exploration subsidiaries on February 7, 2012:
Further to an immediate report issued on August 30, 2011 [reference numbers 2011-01-258639 and 2011-01-258651] with regard to a decision on the "Tanin 1" exploratory drilling ["Tanin 1" or "drilling"]; and to immediate reports issued on February 5, 2012 [reference numbers 2012-01-033108 and 2012-01-033135] on significant indications of natural gas being available at the "Tanin 1" drilling site; and on the basis of information provided to the partnership by Noble Energy Mediterranean, the drilling operator ["operator"], the partnerships are proud to announce a natural gas discovery at "Tanin 1".
The "Tanin 1" drilling site is located within the "364/Alon A" license, in a water depth of approximately 1,773 meters, some 120 km north west of the Haifa coast. As stated in the February 5, 2012 immediate reports, the drilling reached a final depth of approximately 5,500 meters [including the depth of the water] and significant indicators of natural gas were discovered in the target sand layers.
The operator held various tests and logging while drilling, including electrical and Gamma ray tests, as well as initial tests examining the composition of the natural gas and the rock samples from the reservoir. The results, as provided by the operator, satisfied the partnerships vis à vis the existence of natural gas at the drilling site.
The operator informed the partnership that, in its opinion, the quantity of natural gas discovered at the drilling site justifies an analysis and evaluation of the complete quantities of natural gas at the reservoir, and an analysis and evaluation of the natural gas quantities that can commercially be extracted.
Based on the above, the "Tanin 1" drilling is a natural gas discovery.
In accordance with the Israel Securities Authority's disclosure guidelines for oil and gas exploration activities, the partnerships state as follows, "A discovery, as defined by SPE-PRMS, refers to one or more petroleum accumulations, based on exploratory wells, sampling, and/or logging, and that at the said reserve, there is a significant quantity of potentially moveable hydrocarbons. In this context, significant implies that there is proof of significant quantities of petroleum in order to justify any estimates of the overall quantities of resources at the well and estimations of the quantities available for commercial extraction". "However, a discovery, as declared in this report is not considered a discovery in respect of the Petroleum Law. A discovery is confirmed solely by the commissioner of Oil Affairs."
In addition, the partnerships informed that Noble's parent company published on its website a News release that includes data with regard to this drilling. The web page address where this news release can be found is http://investors.nobleenergyinc.com. For the record, the partnerships clarify that the data as presented by Noble with regard to this drilling, and specifically with regard to resources evaluation, were not prepared in accordance with SPE-PRMS and are not in accordance with the Israel Securities Authority's disclosure guidelines for oil and gas exploration activities, and are not satisfying the partnerships, its managements or its controlling shareholders.
An immediate report on estimated resources will be published within 60 days after the report on the discovery, in accordance with provisions of the Israel Securities Authority's disclosure guidelines for oil and gas exploration and extraction operations.