Discovery of signs of hydrocarbons while drilling the Aphrodite-2 drilling in the Ishay License in Israel

1/3/2013 2:59 AM EST

AGR ("the Operator") reports as follows:
 
The Well has reached a depth of 5 652 meters from sea 
level (including water depth of about 1 707 meters). 
Based on examinations performed during the drilling 
of the Well, "significant signs of hydrocarbons" 
(natural gas) were found in the lower Miocene sands.
 
Additional information with respect to the Well, in 
line with Israeli regulations:
 
* Name of the Well: Aphrodite-2
* Date of the finding of the hydrocarbons signs: 
02.01.2013
* Dept of the target top: 5187 meters below sea level.
* Net layer thickness: The thickness of the natural 
gas bearing layer is approximately 15 meters.
* Types of the hydrocarbons: Natural gas
* The types of tests (types of logs) that were 
performed for establishing the information regarding 
the existence of the significant hydrocarbons signs: 
The tests conducted at the Well included MWD 
(measurements while drilling) as well as Wireline 
Logs (including electrical, radioactive, magnetic and 
seismic tests), lithological tests (cuttings and side 
wall cores) and composition and pressure tests of 
gasses and fluids.
* The indications on how the corporation has reached 
its conclusion with respect to the credibility of the 
signs: The Operator has performed various tests as 
abovementioned and whose results attest that the said 
layers contain natural gas. These preliminary results 
and their analysis clearly indicate the existence of 
natural gas in the Well.
 
Warning: "It is clarified that the production tests 
have not been performed in the Well. The Natural Gas 
signs do not evidence an existence of the Discovery 
in its meaning according to PRMS rules or of the 
Discovery in its meaning pursuant to the Petroleum 
Law."    
 
The rig drilling the Aphrodite-2 well has completed 
drilling the Well and is expected to plug and abandon 
the Well in the upcoming 2 weeks. After completing 
the Well, the operator will perform processing and 
evaluation of the information collected while 
drilling and logging.
 
For further information, please contact: 
 
AGR CEO Sverre Skogen at +47 97162010