RATIO OIL EXPLORATION (1992)

Limited Partnership

[1]

Partnership Presentation

October 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 Israeli 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 external 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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TABLE OF CONTENT

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The Levant Basin

Leviathan Project

Additional Assets

Global Opportunities

THE LEVANT BASIN

[4]

Ratio focuses on

hydrocarbon

exploration and

production in the

deep-water of the

Eastern Mediterranean

Sea

THE LEVANT BASIN POTENTIAL (*)

[5]

Natural Gas ~ 75 TCF

Oil ~ 6.6 Billion BBL

* Source: Ministry of Energy: Israeli Oil and

Gas Opportunities publication, October 2016. Prospective , Yet-to-Find, in place resources, P50 Best Guess category (excluding discoveries)

The Israeli Ministry of

Energy intends to launch

a bid round for 24

offshore exploration

blocks in November 2016

LEVIATHAN PROJECT

• Eitan Aizenberg, Ratio’s geologist and one of its

founders, is the prospect generator of the Leviathan and

Dolphin discoveries.

• Ratio held 100% interest in the “Ratio Yam” exploration

areas (where the Leviathan and Dolphin discoveries are

located) and in 2007 invited its current partners to farm-

in to the asset.

• The Leviathan field is 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 square km

• Israel’s Export Policy permits export sales of 50% from

Leviathan plus up to an additional 25% following swap

transactions. Current Leviathan export potential is

approx. 16.4 TCF

• NSAI most updated resources (2C) estimates:

• Natural gas: 21.9 trillion cubic feet (TCF)

• Condensate: 39.4 million barrels (MMBBL) [6]

Leviathan is a World-class asset in terms of quantity, quality and potential for high production delivery Leviathan field is the major discovery of natural gas reservoir in the Levant Basin

LEVIATHAN PROJECT

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Scale & location allow for several commercialization possibilities

Leviathan targets for domestic and regional markets: Israel, Jordan, Egypt and Turkey

LEVIATHAN PROJECT

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First Phase Pipeline Project Focused on Israel & regional export markets

Domestic Supply Module (DSM):

Time Schedule (*) FID – End 2016 First Gas – Q4/2019

CAPEX estimation (*) USD 3.5-4.0B (initial processing capacity ~ 12 BCM/A)

Regional Export Module (REM):

CAPEX estimation (*) USD 1.5-2.0B (additional processing capacity ~ 9 BCM/A) (**)

(*)Based on Operator’s forecasts (**) FID for additional capacity is contingent on markets maturity

• According to Approved Development Plan, a fixed

platform with capacity of 2,100 mmcf/d, will be built in

two modules:

• DSM: A supply of up to 1,200 mmcf/d for Israeli

consumers and adjacent countries and territories, such

as: Jordan, PA, Egypt (Domestic demand)

• REM: 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 ELNG) or

Turkey

LEVIATHAN DEVELOPMENT SYSTEM

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Noble presents

similarities between

Leviathan and the

successful Tamar

Project

• Focus on safety and reliability

• Proven design concepts

• Fixed production platform fabrication

• Jacket and Topsides transportation and installation

• Majority of senior personnel worked for Tamar project

• Contractual & Execution Strategy

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Regulation Gas Outline The final approval of the Governmental Gas Outline in May 2016 paved the road to accelerate Leviathan project development

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 time table for first gas from Leviathan

(Scheduled for December 2019)

Main elements of the Gas Outline

applicable to Ratio

Recognized providing economic incentives for

exploration & development of small/medium scale

gas fields, such as Royee license (70% WI)

LEVIATHAN MARKETING Up-To-Date Contractual Arrangements Leviathan partners pursue extensive discussions and negotiations towards execution of additional GSPAs

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Gas Sale & Purchase Agreements (GSPA)

* TCQ - Total Contract Quantity (measured in BCM)

** Duration - Years from commencement of commercial gas supply

*** forecasted Revenue - Assumes Clients will consume the TCQ and based on the

Partnership's estimation regarding the gas price during the GSPA duration

Letters of Intent (LOI) • Shell-BG (Egypt, ELNG): A supply of 105 BCM

• Dolphinus (Egypt, domestic): A supply of up to 60 BCM

Client TCQ (*) Duration

(**) Forecasted Revenue (USD Million) (***)

NEPCO (Jordan) 45 15 10,000

IPM Be’er Tuvia (Israel) 13 18 3,000

Edeltech (Israel) 6 18 1,300

LEVIATHAN MARKETING

ISRAEL

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Solid visibility for strong and growing demand in the Domestic Market Potential for gas utilization following Coal-to-Gas conversions up to 3.5 BCM/A

(*) Source: BDO Gas Demand Forecast , October 2016 (Inc. Palestinian Authority demand)

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Electricity Cogen & Industry CNG and Chemical Industry Further coal reduction

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Natural Gas Demand Forecast (BCM)

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30.2

REGIONAL MARKETS JORDAN

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In September 2016 a GSPA executed with National Electric Power Company of Jordan (NEPCO)

• Seller: Noble Jordan Marketing Ltd. (SPC owned by Leviathan

partners)

• Total Contract Quantity: 45 BCM

• Term: 15 years from commencement of commercial of gas

supply

• Delivery Point: Israel-Jordan border

NEPCO’s GSPA main parameters

REGIONAL MARKETS EGYPT: Supply & Demand

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bcfd

203520302025202020152010

LNG Imports

Piped imports Onstream Fields

Probable Developments

Under Development

Good Technical

YTFDemand

Domestic 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

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In February 2016 Shell-BG scheme of arrangement became effective Leviathan Partners continue the discussions with Shell

• Annual Contract Quantity: 7 BCM

• Term: 15 years of gas supply

• Delivery Point: Leviathan production platform outlet

Highlights of BG’s MOU

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

REGIONAL MARKETS EGYPT: ELNG Facility

REGIONAL MARKETS EGYPT: Domestic

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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

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

Highlights of Dolphinus LOI

REGIONAL MARKETS Turkey

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Turkey is a significant potential market for natural 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 / constructed (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

LEVIATHAN FINANCING CAPEX

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Potential Funding Sources

Estimated Partnership’s share in Capex for development of the Domestic Supply Module ~ $550M - $600M In final stages of securing a bridge to project finance senior loan lead by top tier international banks

• Senior loan by international and domestic banks

up to an amount of $400M.

Loan expected to be signed prior to obtaining FID

Maintaining maximum flexibility

Consortium of international and domestic banks

• Capital markets subordinated debt secured by

royalties.

• Outstanding capital market warrants

Partnership's equity that has been invested in

Leviathan amounts to ~$160M

LEVIATHAN FINANCING ISSUANCE OF BONDS ( SERIES B ) by Ratio Oil Explorations (Finance) Ltd.

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Package of Subordinated Bonds

and Warrants

• 7 year bond to be repaid in 3 equal installments

in 2021 through 2023.

• Lower coupons through 2020 and higher

coupons from 2021 through 2023.

• Bonds are secured by new royalty related to

Leviathan asset.

• Issued package will also include warrants

issued by the Partnership.

• Other terms substantially similar to

Bonds (Series A).

LEVIATHAN FINANCING ISSUANCE OF BONDS ( SERIES B ) by Ratio Oil Explorations (Finance) Ltd.

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General Structure

RATIO OIL EXPLORATION

) LP1992(

EXPLORATIONSRATIO OIL

(FINANCE) Ltd.

Rights to

receive a

royalty from oil

& gas

production from

Leviathan

Loan for

financing

Ratio’s share

related to

Leviathan lease

BOND (series B) issued by

RATIO OIL EXPLORATIONS (FINANCE) Ltd.

OPTIONS exercisable to participation units

RATIO OIL EXPLORATIONissued by

) LP1992(

Proceeds from

issuance of

Bonds

First fixed lien on the

royalty issued by the

partnership and its

recording in the

Petroleum Register

ADDITIONAL ASSETS

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ROYEE LICENSE (70%) (Operator – Edison)

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

Hanna & Eran LICENSES( *) (15% each): (Operator - Noble Energy) (*) Eran License has expired. A mediation process with the State of Israel is being conducted these days. Hanna License has expired and appeal has been submitted to the minister on this decision.

GLOBAL OPPORTUNITIES

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Guyana (Block B) 50%* WI

• Executed farm-in agreement with a

• subsidiary of ExxonMobil

• Upon closing, ExxonMobil will hold 50%**

WI and be nominated as field operator

• Exxon Mobil discovered “Liza” – a world

class oil field (0.8-1.4 BBOE), which is

located adjacent to Block B

Malta (Area 5) 100% WI

• 3D seismic survey is planned to be

executed in Q4-2016 / Q1-2017

Philippines (Area 4) 100% WI

• announced as winning bidder by the

Government of The Philippines

Ireland (LO 16/28) 100% WI

• Licensing Option has been granted

* The other 50% WI is hold by a local partner

** Upon closing, Ratio and the local partner will hold

25% WI each

The Partnership plans to invest in a new Limited Partnership (“RPL”) that will engage in E&P activity outside Israel. RPL plans to issue securities in the TASE Following the issuing of securities, RPL will control entities(*) that has rights in four offshore assets in - Guyana, Malta, Ireland and Philippines (*) the main shareholders in these entities are Landau & Rotlevy families and Eitan Aizenberg

Block

B

Area

5

LO

16/28

Area 4

Liza

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