Acquisition of GulfSlope Shares
Tel Aviv, March 7, 2019. Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) announces that further to its Immediate Reports dated December 27, 2018 and February 5, 2019 (ref. nos. 2018-01-128031 and 2019-01-010510, respectively), a subsidiary, Delek GOM Investments LLC has made available to its partner in the oil assets in the Gulf of Mexico, GulfSlope Energy Inc. ( “GulfSlope”), a line of credit in an overall amount of USD 11 million that will be used for partial financing of GulfSlope in its continuing drilling operations at the Tau well, of which GulfSlope has drawn down USD 10 million.
According to the terms of the loan, it is for 6 months with interest at 5%. The loan principal is secured by all the assets of GulfSlope.
As part of the terms of the loan the subsidiary has received an option to acquire the shares of GulfSlope for the amount of the balance of the loan granted to GulfSlope at a price of USD 0.042 per share in cash or set off against the loan balance.
The subsidiary has informed GulfSlope it is exercising the option and purchasing the shares against set off of the debt, and in the light of this the subsidiary will hold 22% of GulfSlope’s issued and paid up capital. GulfSlope is a public company whose shares are registered for trading in the USA (OTC:GSPE).
It should be noted that drilling operations at Tau are continuing and GulfSlope (the operator of the oil asset) estimates that the drilling is expected to reach the target layers in the coming weeks.
This is a convenience translation of the original HEBREW immediate report issued to the Tel Aviv Stock Exchange by the Company on March 7, 2019.
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
Head of Investor Relations
Delek Group Ltd.
Tel: +972 9 863 8443