Based on the gas finds known as “Or 1” and “Or South”, a 30 year lease covering 53 square kilometers (approximately 13,100 acres) offshore Israel, was granted in June 2000 (the “Med Yavne Lease”). The original operator of the Med Yavne Lease was BG International Limited. BG resigned as the operator of the Lease and relinquished its working interests in the Med Yavne Lease, and the partners appointed I.O.C Israel Oil Company as the successor operator. According to the operator’s estimates, which are based on the results of drilling the Or 1 and on a 3D seismic survey performed in the area of the Med Yavne lease, the recoverable gas reserves of Or 1 reserve are estimated at 35 billion cubic feet. In January 2008 and in January 2009, I.O.C Israel Oil Company received an opinion from a consulting firm in the United States that performed a techno-economic examination of the development of the Or 1 reserve. This opinion indicates that, under certain assumptions, development of the reserve by connection to a nearby platform (at a distance of seven miles) and from there via an existing transportation pipeline to the coast of Israel, may be economically feasible. It is the intention of the partners in Med Yavne Lease to cooperate with independent third parties to jointly develop Or 1 reserve with their gas reserve.