Tuesday 28 January 2020

Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) announces: Further to what was stated in section 1.7.6(J)(5) of the Company's Periodic Report as of December 31, 2018 that was published on March 30, 2019 (ref. no. 2019-01-029344) (“the Periodic Report”) and to what was stated in section 1.7.5(J)(5) of the Company's Periodic Report as of December 31, 2017 that was published on March 28, 2018 (ref. no. 2018-01-031177) concerning an assessment of the prospective resources in the area of Lease I/14 “Leviathan South” and I/15 “Leviathan North” (jointly “Leviathan Leases” and “Previous Resources Report”), (and further to what was stated in section 1.7.6(D) of the Periodic Report about carrying out the reprocessing of the seismic surveys, inter alia, in respect of the exploratory drilling at deep water targets in the Leviathan Leases “Reprocessing of Data”), the Company is providing an update that during 2019 an analysis was carried out of the Reprocessing of Data, as a result of which a new deep water target was defined in the area of the Leviathan Leases of an isolated carbonate buildup. In addition to the definition of this target, the analysis of the Reprocessing of Data brought up that it was necessary to classify and redefine the two deep water targets, as detailed in the Previous Resources Report as a single target of submarine clastic channel type (jointly “the New Targets”).

Following completion of the Reprocessing of Data and based upon it, Delek Drilling Limited Partnership (“the Partnership”) has drawn up an updated Resources Report in respect of the New Targets in the Leviathan Leases (“Resources Report”). The Resources Report was prepared by Netherland, Sewell and Associates, Inc. (“NSAI” or “the Appraiser”), an expert, certified and independent reserves appraiser. The Resources Report was prepared according to the rules of the petroleum resources management system (SPE-PRMS) and is attached by way of reference to the Partnership's Immediate Report dated January 21, 2020 (ref. no. 2020-01-008526)), and attached to this report is NSAI’s agreement to have it included in this report. Similarly, a presentation of the Partnership is attached as Appendix B concerning what is stated in this Immediate Report. As of the date of this report, the Partnership is assessing, inter alia, carrying out an additional seismic survey in the light of technological developments in the field of seismic surveys, in order to improve the quality of existing knowledge, to provide a basis to take a decision about an exploratory drilling at the New Targets. In addition, the Partnership is assessing the possibility of adding a strategic partner with the applicable knowledge and experience is the specification, drilling and development of an exploration target (in particular a target with a carbonate buildup).

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