OREANDA-NEWS. December 27, 2016. Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”)
provides below an Immediate Report published by each of Delek Drilling Limited Partnership and Avner Oil Exploration Limited Partnership ("the Partnerships") with regard to closing of a transaction for the Sale of all of the Rights in the I/16 Tanin and I/17 Karish Leases to Energean

Further to the provisions of the Partnershipss immediate report of August 16, 2016 regarding the signing of an agreement between the Partnerships (the “Sellers”) and Energean Israel Ltd. (“Energean”) for the sale of all of the rights of the Sellers and of Noble Energy Mediterranean Ltd. in the I/16 Tanin and I/17 Karish leases (the “Leases”) to Energean (the “Agreement”), and the immediate reports of December 14, 2016 regarding fulfillment of the main conditions precedent in the Agreement, each Partnership respectfully updates that in accordance with the terms and conditions of the Agreement, on December 22, 2016 a cash payment of U.S. \\$40 million was remitted to the Sellers. Upon fulfillment of all of the conditions precedent in the Agreement, the transaction contemplated in the Agreement was closed. The transfer of the rights in the Leases in the Petroleum Register will be performed in the coming days upon the deposit of a guaranty by Energean in accordance with the provisions of Section 57 of the Petroleum Law, 5712-1952 and the regulations promulgated thereunder.

The Partnerships are continuing to examine the accounting and tax implications of the transaction contemplated in the Agreement for its financial statements.

The holding rate in the Leases after the transfer of the rights:
Energean Israel Ltd. 100%

This is a convenience translation of the original HEBREW immediate report issued to the Tel Aviv Stock Exchange by the Company on December 25, 2016.

About The Delek Group

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.

In addition, Delek Group has a number of assets in downstream energy, water desalination, and in the finance sector.