RATIO OILEXPLORATION (1992)Limited Partnership [1]

Investors UpdateApril 2017

LEVIATHAN PHASE ONE DEVELOPMENT & GROWTH ENGINES

From Exploration to Development From Exploration to Development

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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LEVIATHAN AT A GLANCE• Final Investment Decision (FID) for Leviathan Phase

1A Development obtained in February 2017.

• Partners approved a CAPEX budget of $3.75Bn.

• 12.5 TCF out of 21.9 TCF of gas resources have been

classified as “Reserves” in March 2017.

• First gas delivery targeted for Q4/2019.

• Initial gas processing capacity of 1.2 bcf/d.

• Executed GSPAs with customers in Israel and Jordan

with revenues estimated at $17Bn.

• On-going extensive negotiations with potential

customers in Israel and regional markets.[3]

2007• Ratio obtains Preliminary permit

2007-2008• Farm out to Noble & Delek

2010• Drill and discovery

2014• Obtain Leases

2017• Phase One FID

Q4/2019• Estimated first Gas

LEVIATHANPROJECT

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Overview of Leviathan DevelopmentFocus on Israel & regional export markets q According to the approved development plan, a fixed

platform with a capacity of 2.1 bcf/d, will be built in two modules: q Domestic Supply Module (Phase 1A): A supply of up to 1.2

bcf/d for Israeli consumers and adjacent countries and territories, such as: Jordan, PA, Egypt (Domestic)

q Regional Export Module (Phase 1B): A supply of up to 1.2 bcf/d through a dedicated pipeline which will connect the production platform with neighboring countries, such as Egypt (Idku ELNG) and Turkey

LEVIATHANDEVELOPMENT(PHASE 1A)

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• Fixed platform located 10 KM offshore Israel with full processing

capabilities.

• Four producing wells at first gas (remaining L-5 and L-7 wells

will be drilled during 2017).

• Gas will be delivered via two 115 KM 18'' flow lines to the

platform.

• Processed gas will be delivered from the platform via a 32''

pipeline to the INGL transmission system.

• Allows development expansion to additional capacity reaching

2.1 bcf/d on the same platform at a marginal capital cost.

Phase 1A - 1.2 bcf/d Expansion (Phase 1B) - 2.1 bcf/d

LEVIATHAN MARKETING

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• Combined Total Contracted Quantities (TCQ) and revenues are estimated at 76 BCM and $17 billion(*).

• On-going extensive negotiation with potential customers in Israel and regional markets, aiming to secure contracts of supply of 1.0 bcf/d in 2020.

• Additional potential growth engines:• IEC - following coal-to-gas conversions

• Operating IPPs which can reduce contracted quantities

• Transportation

• Other local industries

• Palestinian Authority

• On-going discussions with potential anchor customers in Turkey and Egypt (ELNG plant) for expansion of Leviathan Phase One.

(*) forecasted revenues assumes customers will consume the TCQ and based on the Partnership's estimation regarding the gas price during the GSPA’s duration.

LEVIATHAN RESOURCES

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12.5 TCF out of 21.9 TCF of resources were re-classified to “Reserves approved for Development”

1P 2P 3PCategory/ Estimation (Proved) (Proved+ Probable) (Proved + Probable+ 

Possible)

 

Reserves 9.4 12.5 13.7 

1C 2C 3C(Low) (Best) (High)

Contingent Resources     Phase 1A (*) 5 4 4

   Future Development (**) 2.2 5.4 8.8

 Total Reserves &

Resources 16.6 21.9 26.5

Natural Gas Resources (TCF) - NSAI report dated March 2017

(*) Pending Development Category; subject to additional 4 wells and further GSPAs(**) Subject to FID of Phase 2 and further GSPAs

• Phase 1A will begin with four producing wells, each capable of producing up to 400 MMCF of natural gas a day (4.1 bcm/y).

• Drilling has begun on the two remaining wells, Leviathan 5 and Leviathan 7, by the Atwood Advantage drillship.

2017 Drilling Campaign

L-4 L-7 L-3 L-5

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RATIO FINANCING & CASH FLOW

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• Ratio’s Leviathan Development’s CAPEX during

years 2017-2020 estimated at approx. $600m.

• Ratio holds a cash balance position of approx.

$240m.

• Secured financing facility of $250m from

International & local banks led by HSBC and BNP

Paribas. The facility can be increased to $400m

from existing or new lenders.

• Ratio’s accumulated nominal operating cash flow

between the years 2020-2024 to be generated from

Leviathan is estimated at approx. $1,100m (*,**).

(*) As per the Partnership’s immediate report dated March 23,2017 "Leviathan discounted cash flow projections“; based only on Proved & Probable Reserves categories (**) Operating cash flow represents gross revenue from gas and condensate sales less royalties and less operating expenses

LEVIATHAN DEEP OIL PROSPECT

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Pre Drill estimate (NSAI):

Middle Cretaceous 15%

Lower Cretaceous 21%

Mesozoic rocks produce hydrocarbons throughout the Middle East and northern AfricaEnormous regional implications, especially on neighboring structures, if hydrocarbons are foundWhile the original Leviathan 1 deep well was not able to reach its final objective, it confirmed a number of key elements, further derisking the Leviathan deep prospect.

Prospective Resources:

Geologic Success:

ROYEE LICENSE • License Working interest: • Ratio – 70%• Edison (operator) – 20% • Israel Opportunity Limited Partnership – 10%

• Additional hydrocarbon prospects are still under assessment

• First Exploration well to be spud by December 2017• Work Program has been completed, at cost of ~$14m,

which include:• 3D Seismic Survey

• Various Geological, Geophysical and Engineering works

• Environmental Impact Assessment and Site Risks

• Engineering plan for the first Exploration Well

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The Royee well will target a geological concept that has yet to be tested in the Levant Basin.

If proven to contain hydrocarbons, the Royee prospect could be a regional play opener.

HighBestLow

5.023.191.97Recoverable Natural Gas (TCF)

Pre-drill prospective resources (NSAI, December 2014) with a forecasted 36% geological chance of success

ROYEE LICENSE

POTENTAIL DEVELOPMENT SCENARIOS

Assuming significant hydrocarbon discoveries in the Royee license, Ratio intends to seek for cooperation and commercialization opportunities between Royee and neighboring fields.

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PortFouad

Hap’y NorthThekah

CONTACT DETAILS

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Ratio OilExploration (1992)Limited Partnership

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