Nov 11, 2019   SOURCE: PR NewsWire

Ithaca Energy Completes the Purchase of Chevron North Sea Ltd

TEL AVIV, Israel, Nov. 11, 2019 /PRNewswire/ -- Delek Group (TASE: DLEKG) (US ADR: DGRLY) ("the Company") is pleased to announce that Ithaca Energy, its fully-owned North Sea E&P subsidiary, has completed the $2 billion acquisition of Chevron North Sea Limited ("CNSL"). The transaction provides a material and important step up in the scale and breadth of Ithaca's asset base, adding ten additional producing field interests to the existing portfolio, along with a wider portfolio of investment opportunities from which to grow the future cashflows of the business and accelerate monetisation of the Ithaca's existing UK tax allowances.

Taking into account the interim period cashflows generated by CNSL since the transaction's effective date of 1 January 2019, the $200 million deposit paid at signing of the transaction, and conventional working capital adjustments, the price payable at completion of the acquisition was $1.5 billion. The net drawn debt of Ithaca as of the completion date was $1.6 billion, which takes into account the refinancing of existing debt that has been completed in association with the transaction.

The following table summarises the producing field interests that have been acquired as part of the transaction.

                  Field            Operator Acquired Interest 
     
              Hydrocarbons

    ---

        Captain         
     CNSL                            85% 
     Oil

    ---

        Alba            
     CNSL                         23.37% 
     Oil

    ---

        Erskine         
     CNSL                            50% 
     Gas-Condensate

    ---

        Alder           
     CNSL                         73.68% 
     Gas-Condensate

    ---

        Britannia       
     Chrysaor                     32.38% 
     Gas-Condensate

    ---

        Brodger         
     Chrysaor                      6.25% 
     Gas-Condensate

    ---

        Callanish       
     Chrysaor                      16.5% 
     Oil

    ---

        Enochdhu        
     Chrysaor                        50% 
     Oil

    ---

        Elgin /
         Franklin       
     TOTAL                         3.90% 
     Gas-Condensate

    ---

        Jade            
     Chrysaor                     19.93% 
     Gas-Condensate

    ---

Asi Bartfeld, Delek Group CEO, commented:

"With completion of the acquisition, we are delighted to have made a significant step towards our strategic objective of building the Delek Group's position as a world class E&P business. The acquisition has established Ithaca Energy as a leading UK North Sea oil and gas company with a strong outlook and the opportunity set from which to deliver material value to the Delek Group and enhance its presence in the global energy markets."

Les Thomas, Ithaca Energy CEO, commented:

"Completion of the CNSL acquisition marks a major milestone in the long term development of Ithaca Energy. The significantly enlarged operations provide an excellent platform from which to maximise the value of our high-quality asset portfolio and establishes the Company as a leading UK North Sea oil and gas producer. We have a highly experienced organisation that is well set-up to deliver upon our investment plans and secure the future success of the business. With this exciting backdrop, we look forward to contributing to the industry's objective of maximising economic recovery for the UK North Sea over the years to come".

About The Delek Group

Delek Group is an independent E&P and the pioneering visionary behind the development of the East Med. With major finds in the Levant Basin, including the Leviathan (21.4 TCF) and Tamar (11.2 TCF) reservoirs and others, Delek is leading the region's development into a major natural gas export hub. In addition, Delek has embarked on an international expansion with a focus on high-potential opportunities in the North Sea and North America. Delek Group is one of Israel's largest and most prominent companies with a consistent track record of growth. Its shares are traded on the Tel Aviv Stock Exchange (TASE:DLEKG) and are part of the TA 35 Index.

For more information on Delek Group, please visit www.delek-group.com

Contact:

Investors
Yonah Weisz
Head of Investor Relations
Delek Group Ltd.
Tel: +972-9-863-8443
investor@delek-group.com

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SOURCE Delek Group Ltd.