Avner Oil - Annual Report 2011 - Delek Energy Systems

ParameterLower-Oligocene(%)Mid-Cretaceous(%)Lower-Cretaceous(%)Trap integrity 55 85 85Reservoir quality 80 40 55Source evaluation 50 55 55Migration / Timing 40 60 60Total 9 11 15(G)(H)(I)(J)(K)(L)(M)It is emphasized that the resources report appraised each target separately and there is nodependence between the targets.Estimated probability of development for commercial production. At the date of the report,the Partnership is unable to provide a statistical estimate of the probability for developmentof the targets for commercial production. However, it can be estimated that the mainpotential market is the domestic market and international market given an oil discovery andthe international market given a natural gas discovery. Accordingly, the Partnership isassessing alternatives for commercializing the hydrocarbons (if discovered and produced),including the option of exporting oil and/or natural gas, and sale to the international market. Itis noted that when assessing the potential for commercial production, there may be anoption of combining development of a discovery, if there is a discovery in one or more of thetargets later in the drilling works, with the development plans of the natural gas reservesreported in the upper part of the drilling (Oligo-Miocene layers). In addition, if relatively smallquantities of natural gas and/or oil are discovered in any of these targets, economicallyfeasibledevelopment could require joint development of several discoveries, utilizingregional infrastructure. For information about the domestic gas market, see section ‎6 aboveand for further information about possible export of gas, see section ‎7.28.6.The Partnership's explanations of the basic parameters used to calculate the differencescenarios: The parameters used to calculate the estimates are mainly based on the resultsof the 3D seismic survey, information gathered in the Leviathan 1 drilling and generalknowledge of the layers and similar reservoirs.There is no certainty that any part of these potential resources will indeed be discovered, ifthey are discovered, there is no certainty that it will be possible and from the commercialperspective to produce any part of the resources. The prospective information does not liewithin the bounds of an evaluation in respect of the contingent reserves and resources,which can only be evaluated after exploration drilling, if at all.Notice regarding forward-looking information: The estimates of NSAI in respect of theprospective resources in the different targets following drilling at Leviathan 1 are forwardlookinginformation as defined in the Securities Law. These estimates are partially based ongeological, geophysical and other information received from the lease operator from thedrilling and/or from other drillings, and are the professional estimates and assumptions onlyof NSAI and there can be no certainty in respect of them. Actual quantities of hydrocarbonsdiscovered (if discovered) and produced (if produced) may be materially different from theseestimates and assumptions, partly due to technical and operational conditions and/orregulatory changes and/or the supply and demand conditions in the market and/or actualperformance of the reservoir. The estimates and assumptions may be updated if additionalinformation becomes available and/or as the result of a range of factors related to oil andnatural gas exploration and production.The Partnership declares that all of the above information has been prepared in compliancewith the guidelines set out in the Petroleum Resources Management System (SPE-PRMS).Opinion of the appraiserThe report of the contingent resources prepared by NSAI is attached to this report asAppendix G and includes the consent of NSAI to attach it to this report.Management declaration(1) Declaration date: March 28, 2012A-91