Avner Oil - Annual Report 2011 - Delek Energy Systems

Rachel licensePeriodSummary of the operations performedin the period / summary of the plannedwork plan2011 • Drilling at Leviathan 1 continued withthe aim of reaching the secondarytargets as set out above, at a totaldepth of 7,200 meters.• At the beginning of April 2011, drillingat Leviathan 1 was suspended foroperational-technical reasons, whichprevented continuation of drillingworks.• Assessment of alternatives fordevelopment of the Leviathan gas field2012 upto June14, 2013• At the beginning of January 2012, theHomer Ferrington drilling rig resumeddrilling at Leviathan 1, with the aim ofdeepening the well to the secondarytargets. Production tests are planned atLeviathan 1.• Continuation of interpretation ofseismic surveys in the Ratio Yamlicenses that have not been drilled• Assessment of alternatives fordevelopment of the Leviathan gas field• Submission of a summary report of thedrilling findings no later than threemonths after completion.• Submission of a report summarizingthe operations in the license area byJune 14, 2013Actual totalcost/estimated totalbudget for operationson the level of the oilasset (USDthousands) 86109,5797,132The Partnership'seffective share of thecost/budget (USDthousands)26,7051,61745,000 11,408PeriodAmit licenseSummary of the operations performedin the period / summary of the plannedwork plan2009 • Mapping of potential prospects basedon a 2D seismic survey conducted in2008• 3-D seismic surveys• Feasibility analysis of the prospects• Planning for drilling in the license2010 • Processing and interpretation of theseismic surveys, as described aboveActual totalcost/estimated totalbudget for operationson the level of the oilasset (USDthousands) 87The Partnership'seffective share of thecost/budget (USDthousands)3,471 8461,124 2742011 • In March 2011, appraisal drillingstarted at Leviathan 2 88 54,839 13,364 91878891The amounts for 2009-2011 are amounts that have actually been expended and are audited in the financialstatements.It is noted that the Leviathan formation covers a vast area of more than 325 square km. The Partnership estimatesthat given the size and quality of the reservoir, the project partners are required to perform production tests at theLeviathan 1 well and develop two other appraisal wells (including the Leviathan 3 well, which has been completed atthe publication date of the report). As these works progress, the project partners will be able to assess the size andquality of the Leviathan reservoir and determine timetables for application for a lease.A-78