OREANDA-NEWS. Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) announces that attached is an Immediate  Report published by each of Delek Drilling Limited Partnership and Avner Oil  Exploration Limited Partnership ("the Partnerships) 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%    

BG Cyprus Limited.

35%

Delek Drilling Limited Partnership

15%

Avner Oil Exploration - Limited    Partnership

15%

The Delek Group, Israel's  dominant integrated energy company, is the pioneering leader of the natural gas  exploration and production activities that are transforming the Eastern  Mediterranean's Levant   Basin into one of the  energy industry's most promising emerging regions. Having discovered Tamar and  Leviathan, two of the world's largest natural gas finds since 2000, Delek and  its partners are now developing a balanced, world-class portfolio of  exploration, development and production assets with total gross natural gas  resources discovered since 2009 of approximately 40 TCF.