NewMed Energy Partnership : Update to the Evaluation of the Contingent and Prospective Resources in the Aphrodite Reservoir in Cyprus following the A-3 Appraisal Drilling

NewMed Energy - Limited Partnership

(the "Partnership")

	September 5, 2023
Israel Securities Authority	Tel Aviv Stock Exchange Ltd.
22 Kanfei Nesharim St.	2 Ahuzat Bayit St.
Jerusalem	Tel Aviv
Via Magna	Via Magna
Dear Sir/Madam,

Re: Update to the Evaluation of the Contingent and Prospective Resources in the

Aphrodite Reservoir in Cyprus following the A-3 Appraisal Drilling

Further to the provisions of Sections 7.3.6 and 7.3.11 of Chapter A (Description of the Partnership's Business) of the Partnership's 2022 periodic report, released on March 28, 2023 (Ref. No.: 2023-01-033096) (the "Periodic Report"), of Section 3 of the update to Chapter A of the Partnership's Q1/2023 report, as released on May 11, 2023 (Ref. No.: 2023-01-050346) (the "Q1 Report"), and of Section 4 of the update to Chapter A of the Partnership's Q2/2023 report, as released on August 21, 2023 (Ref. No.: 2023-01-095937) (the "Q2 Report"), included herein by reference, regarding the drilling of the A-3 appraisal well (the "Well" or the "A-3Well") which was completed in July 2023, the Partnership respectfully releases an immediate report on an update to the evaluation of the contingent and prospective resources in the Aphrodite Reservoir within block 12 of the exclusive economic zone (EEZ) of the Republic of Cyprus (the "Reservoir" or the "Aphrodite Reservoir" and "Block 12", respectively). Note that the vast majority of the Aphrodite Reservoir is located in the EEZ of the Republic of Cyprus, and a small portion thereof is located in Israel's EEZ, and that this report only refers to the resources located in the EEZ of the Republic of Cyprus.

According to a report provided to the Partnership by Netherland, Sewell & Associates Inc. ("NSAI"), which was prepared in accordance with the rules of the Petroleum Resources Management System (SPE-PRMS) (the "Resource Report"), as of August 31, 2023, some of the natural gas and condensate resources in the Aphrodite Reservoir were proven by the A-3 Well and the previous wells in the Reservoir, and therefore were classified as contingent resources, while some of the natural gas and condensate resources have not yet been discovered, and therefore remained classified as prospective resources, all as specified below:

1. Contingent resources

1. Quantity data
   According to the Resource Report, as of August 31, 2023, the contingent natural gas and condensate resources in the Aphrodite Reservoir are classified at the development pending stage, and their

2

volume is as specified below. For details regarding conformity between these data and the data in the Reservoir's previous resource report, which was included in the Partnership's 2020 periodic report, as released on March 17, 2021 (Ref. no.: 2021-01-036588) (the "Previous Resource Report"), see Section 4 below.

Reservoir		Estimate

Total (100%) Gas in the		Total Rate Attributed
Petroleum Asset (Gross)		to the Holders of the
				Equity Interests of the
				Partnership (Gross)1
Natural		Condensate		Natural		Condensate
Gas		Million		Gas		Million
BCF		Barrels		BCF		Barrels

Sands A		Low Estimate
		Best Estimate
		High Estimate
Sands C		Low Estimate
		Best Estimate
		High Estimate
Sands D1U		Low Estimate
		Best Estimate
		High Estimate
Sands D1M		Low Estimate
		Best Estimate
		High Estimate
Sands D1L		Low Estimate
		Best Estimate
		High Estimate
Sands D2U		Low Estimate
		Best Estimate
		High Estimate
Sands D2M		Low Estimate
		Best Estimate
		High Estimate
Sands D2L		Low Estimate
		Best Estimate
		High Estimate
		Low Estimate
		Best Estimate

22.8

50.3

60

1792.9

2115

2354.7

91.9

235.9

517.9

76.8

199.1

358.1

117.2

296.1

378.3

357.6

450.7

541.1

117.6

160

187.3

22.6

30.1

36.5

2599.4

3537.2

0

0.1

0.1

3.6

4.7

5.7

0.2

0.5

1.2

0.2

0.4

0.9

0.2

0.7

0.9

0.7

1

1.3

0.2

0.4

0.4

0

0.1

0.1

5.1

7.9

6.8

15.1

18

537.9

634.5

706.4

27.6

70.8

155.4

23

59.7

107.4

35.2

88.8

113.5

107.3

135.2

162.3

35.3

48

56.2

6.8

9

10.9

779.8

1061.2

0

0

0

1.1

1.4

1.7

0.1

0.2

0.4

0

0.1

0.3

0.1

0.2

0.3

0.2

0.3

0.4

0.1

0.1

0.1

0

0

0

1.5

2.4

1 In light of the fact that the Republic of Cyprus' share in the gas to be produced from Block 12 depends on the rate of production, which is not known and cannot be estimated as of the date of this report, it is not possible to determine, as of the date of this report, the net share of the holders of the equity interests of the Partnership in the resources. Therefore, the gross share of the holders of the equity interests of the Partnership is included in the above table before the deduction of the Republic of Cyprus' share pursuant to the provisions of the production sharing contract (the "PSC") and before the payment of royalties.

3

Reservoir

Total

contingent resources

Estimate

High Estimate

Total (100%) Gas in the		Total Rate Attributed
Petroleum Asset (Gross)		to the Holders of the
				Equity Interests of the
				Partnership (Gross)1
Natural		Condensate		Natural		Condensate
Gas		Million		Gas		Million
BCF		Barrels		BCF		Barrels
4433.9		10.6		1330.2		3.2

1. The Resource Report states that the contingent resources are contingent on the finalization of the development plan and adoption of an investment decision (sanctioning) with respect thereto, the signing of agreements for the sale of natural gas and a commitment to development of the resources. For details regarding the Reservoir's development plan, see Sections 7.3.6 and 7.3.11 of Chapter A of the Periodic Report, Section 3 of the update to Chapter A of the Q1 Report, and Section 4(a) of the update to Chapter A of the Q2 Report, and the
   Partnership's immediate reports of May 31, 2023 and August 25, 2023 (Ref. no.: 2023-01-058887 and 2023-01-079951, respectively).
2. The Resource Report states that it does not include an economic analysis of the discoveries in the petroleum asset, and that based on the development of similar reservoirs, the contingent resources in the best estimate category have a reasonable probability of being economically recoverable.

Caution - there is no certainty that it will be commercially possible to produce any quantity from the contingent resources.

2. Prospective resources

1. Quantity data
   According to the Resource Report, as of August 31, 2023, the prospective natural gas and condensate resources in the Aphrodite Reservoir are as specified below:

Target		Estimate

Sands A		Low Estimate
		Best Estimate

Total (100%) Gas in the Petroleum Asset (Gross)

Natural		Condensate
Gas		Million
BCF		Barrels
3.8		0.0
9.8		0.0

Total Rate Attributed to the Holders of the Equity Interests of the

Partnership (Gross) 2

Natural		Condensate
Gas		Million
BCF		Barrels
1.1		0.0
2.9		0.0

2 See Footnote 1 above.

4

Target		Estimate

			High Estimate
	Sands C		Low Estimate
			Best Estimate
			High Estimate
	Sands D1U		Low Estimate
			Best Estimate
			High Estimate
	Sands D1M		Low Estimate
			Best Estimate
			High Estimate
	Sands D1L		Low Estimate
			Best Estimate
			High Estimate
	Sands D2U		Low Estimate
			Best Estimate
			High Estimate
	Sands D2M		Low Estimate
			Best Estimate
			High Estimate
	Sands D2L		Low Estimate
			Best Estimate
			High Estimate

Total (100%) Gas in the Petroleum Asset (Gross)

Natural		Condensate
Gas		Million
BCF		Barrels
18.5		0.0
33.0		0.1
52.3		0.1
81.0		0.2
0.3		0
2.8		0
26.2		0.1
0		0
0.8		0
17		0
1.7		0
4		0
10.1		0
0.7		0
7.4		0
86.9		0.2
0		0
1		0
24.3		0.1
0.1		0
1.1		0
21.3		0.1

Total Rate Attributed to the Holders of the Equity Interests of the

Partnership (Gross) 2

Natural		Condensate
Gas		Million
BCF		Barrels
5.6		0.0
9.9		0.0
15.7		0.0
24.3		0.1
0.1		0
0.8		0
7.9		0
0		0.0
0.2		0
5.1		0
0.5		0
1.2		0
3		0
0.2		0
2.2		0
26.1		0.1
0		0.0
0.3		0.0
7.3		0
0		0.0
0.3		0.0
6.4		0

1. The Resource Report was prepared based on 3D seismic surveys carried out in 2009 and 2013 by Petroleum Geo-Services, which were last consolidated and reprocessed in 2014, based on data collected from all of the wells drilled in the Reservoir, and based on data from nearby and similar reservoirs around the world, according to best industry practices.
2. The basic parameters used for calculation of the various scenarios:
   The Resource Report distinguishes between resources in various fault blocks. As specified in the Resource Report, following the drilling of the A-3 Well, prospective resources now remain in the south-western fault block only, and the parameters used for the calculation thereof, which remain unchanged compared to the data in the Previous Resource Report, are specified below:

5

Target

Average Gross Thickness (feet)

Area (Acree)

Gross Rock Volume (Acre*Feet)

Sands A

Sands C

Sands D1U

Sands D1L

Sands D2

Sands D1U

Sands D1L

Sands D2

High

51

103

55

84

39

66

74

83

Low

51

103

15

4

32

15

4

4

High

2,896

736

1,018

732

395

1,296

909

487

Low

1,930

490

52

25

115

46

25

25

High

146,232

75,972

56,044

61,355

15,383

85,606

66,966

40,415

Low

97,488

50,648

770

100

3,649

700

100

100

Target

Sands A

Sands C

Sands D1U

Sands D1L

Sands D2

Sands D1U

Sands D1L

Sands D2

	Gas Saturation
	(decimal)
High			Low
0.60			0.50
0.75			0.65
0.65			0.55
0.55			0.45
0.65			0.55
0.75			0.65
0.75			0.65
0.65			0.55

	Porosity
	(decimal)
High			Low
0.20			0.16
0.23			0.19
0.23			0.19
0.26			0.21
0.24			0.20
0.23			0.19
0.24			0.20
0.23			0.19

Net-to-Gross (decimal)

High		Low
0.13		0.03
0.70		0.40
0.50		0.30
0.45		0.25
0.50		0.30
0.90		0.70
0.45		0.25
0.70		0.40

Target

Sands A

Sands C

Sands D1U

Sands D1L

Sands D2

Sands D1U

Sands D1L

Sands D2

Gas Recovery Factor (decimal)

High		Low
0.7		0.6
0.7		0.6
0.7		0.6
0.7		0.6
0.7		0.6
0.7		0.6
0.7		0.6
0.7		0.6

Gas Formation Volume Factor

(SCF/RCF)

High		Low
375		375
378		378
378		378
378		378
378		378
379		379
379		379
379		379

1. The significant risks entailed by the continuation of the process are related to proving a commercial discovery and include, inter alia, the signing of agreements for the sale of natural gas, receipt of the required regulatory approvals, the design, manufacture, installation and operation of the facilities, and costs of appraisal and development of the Reservoir. Additionally, there are risks in proving the prospective resources in the fault block not yet drilled. For further details regarding