Offshore staff

TEL AVIV, Israel – Noble Energy, Delek Drilling Management, and Avner Oil & Gas have agreed on terms for an exploration license offshore Cyprus.

The three companies originally signed a Transfer Agreement in March 2010 concerning offshore block 12. Under these new amendments:

1. The last date for approval by the Cypriot authorities, for transfer of the block 12 rights to Delek and Avner, has been extended to Aug. 1, 2013.

2. Delek Drilling and Avner will bear 15% of Noble’s expenditure on activities including exploration and appraisal wells, development or production, and/or other operations, in accordance with the Production Sharing Contract.

3. Up to Aug. 1, 2013, Delek and Avner can transfer their rights to any third party acceptable to Noble, subject to approval by the Cypriot authorities.

4. If the government does not approve the transfers to Delek and Avner, or to other parties, Noble will announce a commercial discovery in block 12, with all parties entitled to a refund from Noble of all amounts they have paid.

5. Up to approval by the authorities for the transfer of rights to the partnership, Delek and Avner will have no access to any information relating to block 12 activities that are confidential according to the PSC, nor influence on drilling decisions.

6. To the best knowledge of the partnership, Noble will shortly start exploration drilling in the block 12, although it has not yet notified its partners of its plans.

08/24/2011