RATIO OIL EXPLORATION (1992)

Limited Partnership

[1]

Partnership Presentation

May 2016

DISCLAIMER This presentation was prepared by Ratio Oil Exploration (1992) – Limited Partnership (the “Partnership” or “Ratio”). It is not an offer to buy or sell securities of the Partnership, nor an invitation to receive such offers, and is designed, as aforesaid, for the provision of information only. The information used to make the presentation (the “Information”) is given for convenience purposes only and is neither a basis for making any investment decision, nor a recommendation nor an opinion, and is no substitute for the investor’s discretion.

Everything stated in this presentation with respect to an analysis of the Partnership’s business is merely a summary. To obtain a full picture of the Partnership’s business and the risks facing the Partnership, review the Partnership’s Periodical Reports and Immediate Reports, as filed to the Israeli Securities Authority on the Magna website. The Partnership does not warrant that the Information is either complete or accurate, nor will bear any liability for any damages and/or losses which may result from the use of the Information.

Various issues addressed in this presentation, which include forecasts, goals, estimates, assessments and other information pertaining to future events and/or matters, whose materialization is neither certain nor within the Partnership’s control, including in connection with data, income forecasts, the value of the Partnership, costs of projects, development plans and concepts and construction thereof etc., are forward-looking information, as defined in the Securities Law. Such Information is based solely on the Partnership’s subjective assessment, based on facts and figures concerning the status of the Partnership’s business, and macro-economic facts and figures, all as are known to the Partnership on the date of preparation of this presentation. The Partnership does not undertake to update and/or change any such forecast and/or estimate to reflect events and/or circumstances occurring after the date of preparation of this presentation. The materialization or non-materialization of the forward-looking information will be affected, inter alia, by risk factors characterizing the Partnership’s business, as well as by developments in the general environment and outside factors affecting the Partnership’s business, third-party representations not materializing, delays in the receipt of permits, etc., which cannot be estimated in advance and are beyond the Partnership’s control. The Partnership’s results of operations may differ materially from the results estimated or implied from the aforesaid, inter alia due to a change in any one of the foregoing factors.

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THE LEVANT BASIN

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Ratio is focused on

hydrocarbon

exploration and

production in the

deep-water of the

Eastern Mediterranean

Sea

THE LEVANT BASIN

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Potential

~ 122 Tcf *

Discovered

~ 40Tcf **

* Source: US Geological Survey (USGS) Fact sheet 2010-3014, March 2010

** Reserves and Contingent Resources (Best Estimate Category)

RATIO ASSETS

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Leases: • Leviathan North (15%) • Leviathan South (15%) (Operator - Noble Energy)

Licenses: • Hanna (15%) • Eran (15%) (*) (Operator - Noble Energy) •Royee (70%) (Operator - Edison SpA)

(*) License has expired. An appeal was submitted to the Supreme Court

LEVIATHAN DISCOVERY

• Eitan Aizenberg, one of Ratio's founders, is the prospect

generator of the Leviathan and Dolphin discoveries

• Ratio held 100% interest in the Ratio Yam exploration

areas and in 2007 invited its current partners to farm-in to

the asset

• Located in the Leviathan South & Leviathan North

Leases, approx. 135km west of Haifa, Israel in water

depths of approx. 1,630 meter, and covers approx. 325

km2

• Export Policy permits export sales of 50% from Leviathan

plus up to an additional 25% is permitted following swap

transactions. Current Leviathan export potential is

approx. 16.4 TCF

• NSAI most updated resources estimates:

• Natural gas : 21.9 trillion cubic feet (TCF)

• Condensate: 39.4 million barrels (MMBBL)

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Leviathan is a World-class asset in terms of quantity, quality and potential for high production delivery

LEVIATHAN DISCOVERY

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Scale & location allow for multiple commercialization possibilities

Pipeline projects target domestic and regional markets: Israel, Jordan, Egypt and Turkey

LEVIATHAN DEVELOPMENT

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First Phase pipeline project Focused on Israel & regional export markets

CAPEX estimations: USD 3.5-4.0B for the Regional Module; USD 5.0-6.0B for both Regional Module and Expanded Regional Module Ratio is in advanced process of securing financing with international banks

• Fixed Production Platform with a maximum capacity of

2,100 mmcf/d, which may consist of two modules: • Regional Module: 1,200 mmcf/d. A supply of up to 1,200

mmcf/d through connection to the Israeli grid for Israeli

consumers and adjacent countries, such as Jordan, Egypt

• Expanded Regional Module: 900 mmcf/d. A supply of up to

1,200 mmcf/d through a dedicated pipeline which will

connect the production platform with neighboring counties,

such as Egypt (Idku LNG plant) or Turkey

LEVIATHAN DEVELOPMENT

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Fixed Leg Production Platform

Anticipated schedule:

Final Investment

Decision:

End 2016

First Gas:

End 2019

• In March 2016 The Israeli Government has approved the

zoning (“TAMA”), which enables construction of natural

gas treatment & receiving facilities and infrastructure

strips within designated offshore and onshore areas

• In April 2016, the National Planning Council approved the

proposed mix for full offshore treatment and the facilities

location

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Gas Outline Main elements of the governmental gas outline applicable to Ratio Israeli Supreme Court has approved the gas outline, except for approval procedure of the stability clause

Allowed Transfer export quota from Karish & Tanin fields to

Leviathan

Allowed joint marketing with other Leviathan partners

Exercised article 52 of the Restrictive Trade Practices Law by

the PM in his role as the minister of economy and trade

Established milestone timeline for the further investment in the

development of the Leviathan field

Established time table for first gas from Leviathan

(Currently December 2019)

PIPELINE PROJECTS: Israel

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Leviathan partners recently executed the first gas sale contract and pursue extensive discussions with several potential domestic customers

Israel’s natural gas consumption in 2015~ 8.4 BCM (*)

• The MEWR forecasts that the domestic demand will reach 12.1 BCM in

2020 and 14.7 BCM in 2025 (*)

• Potential of an additional 3 BCM per annum from conversions of coal to

gas (represents approx. 2,500 MW)

• Potential of increase in gas utilization by dispatching combined cycle gas

turbines (CCGTs) before coal power stations

Israel

(*) Ministry of Energy and Water Resources (“MEWR”)”- H1/2015 updated forecast

PIPELINE PROJECTS: Jordan

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Ongoing extensive GSA negotiations with National Electric Power Company of Jordan (NEPCO) Potential Jordanian gas consumption could reach up to 4.5 BCM per year (*)

• Contract Quantity: 45 BCM

• Term: 15 years of gas supply

• Delivery Point: Israel-Jordan border

• Price: Brent linked with a floor price; similar pricing to other gas contracts

for export sales from Israel

• Binding gas supply contract is anticipated to be signed within the coming

months

NEPCO’s LOI Highlights from September 2014

Forecasted sales throughout the contract term is 1.6 TCF (approx. 7% of Leviathan gas resources)

(*) NEPCO 2014 Financial Report for total electricity consumption

Egypt : Supply & Demand

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Zohr Project Data (*): Discovered : August 2015 Start-up: from Q4/2017 Gas-in-place: 30 TCF Plateau production: 2.7 bcf/d Sales: local market Zohr will allow to reduce gas shortage in Egypt (*) ENI publications

0

1

2

3

4

5

6

7

8

9

10

bcfd

203520302025202020152010

LNG Imports

Piped imports Onstream Fields

Probable Developments

Under Development

Good Technical

YTFDemand

Gas Supply / Demand (2010-2035)

Demand - includes only local gas consumption (excludes LNG facilities’ demand)

Supply – Mostly Zohr (shown as “Probable Development”)

Source : WoodMackenzie, January 2016

PIPELINE PROJECTS: Egypt

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Leviathan gas targets for use as feed gas in Idku LNG plant In February 2016 Shell-BG scheme of arrangement became effective

• Annual/Total Quantity: 7 BCM per annum / 105 BCM per contract term

• Term: 15 years of gas supply

• Delivery Point: Leviathan production platform outlet

Highlights of BG’s MOU from June 2014

Potential to increase of both annual and total quantities (on top of the MOU)

PIPELINE PROJECTS: Egypt

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In November 2015 the Leviathan partners and Dolphinus Holdings signed a Letter of Intent (LOI) to negotiate a GSA to supply gas to the Egyptian market through the existing EMG pipeline

• Quantity: up to 4 BCM per annum

• Term: 10-15 years of gas supply

Highlights of Dolphinus LOI:

Potential to deliver gas through the existing Israeli transmission system and the existing EMG operated pipeline to Egypt

PIPELINE PROJECTS: Turkey

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Turkey is a significant potential market for piped gas

Based on the forecasted Turkish demand, Leviathan has a potential to supply up to 10 BCM per annum to the Turkish market

Gas supply diversification In 2015, approx. 70% of Turkey's gas was imported from Russia and Iran

Potential Transit Hub from East to West Several regional transmission lines are planned (TAP, TANAP)

Expected gas shortage As of 2021, expected shortage of approx. 10 BCM per annum

(*) IHS April 2015 forecast

LEVIATHAN DEEP OIL PROSPECT

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Play-opening opportunity

Prospective Resources, NSAI pre-drill estimation

Geologic Success: Middle Cretaceous 15% Lower Cretaceous 21%

• Operator forecasts 25% geologic chance of success

• Mesozoic rocks produce hydrocarbons throughout the Middle East and

northern Africa

• Enormous regional implications, especially on neighboring structures, if

hydrocarbons are found

ROYEE LICENSE

• In November 2012 Edison International joined Ratio to operate

the assets. Edison holds 20% of the interest in the Royee license

• Ratio provides on-going geological and other professional related services to

the operator for the joint operations

• Additional hydrocarbons prospects are still under assessment

• According to the Work Program the first Exploration well to be spud by

December 2016

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Ratio initiated the exploration activities in the license area

In December 2014 NSAI estimated the pre-drill prospective resources in Royee prospect at ~ 3.2 TCF of natural gas (Best Estimate) with a forecasted 36% geological chance of success

CONTACT DETAILS

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Ratio Oil Exploration (1992) Limited Partnership

85 Yehuda Halevy St. Tel Aviv 6579614 Israel Tel: +972-3-5661338 Fax: +972-3-5661280 office@ratioil.com