RATIO OIL EXPLORATION (1992)

Limited Partnership

[1]

Partnership Presentation

January 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 with the Israeli Securities Authority through the Magna website. The Partnership does not warrant that the Information is either complete or accurate, nor will bear any liability for any damage 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 current state 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: Operator - Noble Energy: • Leviathan North (15%) • Leviathan South (15%)

Licenses: Operator - Noble Energy: • Hanna (15%) • Eran (15%) (*)

Operator - Edison SpA: •Royee (70%)

(*) 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 resources estimate increased 16% to 21.9 TCF of natural gas and

39.4 MMBBL of condensate; an increase of ~ 3 TCF of natural gas and

~5.3 MMBBL of condensate (2C estimation)

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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 Israel, PA ,Jordan, Cyprus, Egypt and Turkey

LNG project targets mainly to the Asian markets

LEVIATHAN DEVELOPMENT

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Field Development will be performed in several phases

Phase one pipeline project Focused on Israel & regional export markets

Ratio is in advanced process of securing financing with international banks Potential additional phases: pipeline, FLNG, joint development with neighboring fields

• Base Case: Floating Pressure Storage Offloading (FPSO) platform with a

maximum capacity of 1,600-1800 mmcf/d

• Other options for the phase one project are being considered and

analyzed in order to optimize the development plan and to align between

project’s capacity, time schedule and market demand

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Gas Outline Elements of governmental gas outline applicable to Ratio

Regulatory Stability: 10 years from outline enact

Transfer export quota from Karish & Tanin fields to Leviathan

Several pricing options for Leviathan gas contracts in Israel

(price linkage to: IPPs, cogeneration, weighted average, Brent, export)

Incentives for small field developments

Milestone timeline established for the further investment in the

development of the Leviathan field

Leviathan First Gas: Within 48 months after outline is enacted

(Currently December 2019)

PIPELINE PROJECTS: Israel

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Ratio and its partners have commenced discussions with potential local customers to sell gas from Leviathan project

Israel’s consumption in 2014~ 7.6 BCM (*)

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

2020 and 14.7 BCM in 2025 (*)

• Potential of additional 3 BCM per annum coal to gas (represents

conversion of 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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On-going extensive GSA negotiations with National Electric Power Company of Jordan (NEPCO) with an expectation to finalize within the upcoming months 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

PIPELINE PROJECTS: Egypt : Supply & Demand

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ENI’s Zohr discovery and plans to develop other large scale projects allow Egypt to expand the supply side Existing LNG facilities in Damietta and Idku suffer from lack of gas Market potential for Leviathan gas and regional synergies

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)

Source : WoodMackenzie, January 2016

PIPELINE PROJECTS: Egypt

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On-going extensive GSA negotiations with BG with an expectation to finalize within the upcoming months Leviathan gas targets for use as feed gas in BG’s Idku LNG plant In 2014 the Idku LNG plant was operating on approx.10% capacity due to a substantial shortage in gas supply

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

• Term: 15 years of gas supply

• Delivery Point: Leviathan FPSO outlet

Highlights of BG’s MOU from June 2014

Potential increase in 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 2014, 74% 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