Tel Aviv, April 25, 2017. Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) presents below an Immediate Report published by the each of Avner Oil Exploration Limited Partnership and Delek Drilling Limited Partnership ("the Partnerships") concerning a sales plan for part of their holdings in the Tamar and Dalit fields.
Pursuant to what was stated in section 7.30.1 (e) of the Partnerships' Periodic Reports to December 31, 2016 as was published on March 23, 2017 ("Periodic Reports") concerning the assessment of various alternatives for the sale of all the Partnerships' holdings in the Tamar project, as was stated in Government decision no. 476 of August 16, 2015 concerning the outline plan to increase the amount of natural gas produced in the Tamar natural gas field and the rapid development of the Leviathan, Karish, Tanin and other natural gas fields ("the Gas Outline Plan"), including the manner of sale to a third party and/or sale through a public offering and/or various appropriate capital instruments, the Partnerships announce that they intend to set up a company through which they will sell up to 10% of their rights in the Tamar and Dalit fields that are located in the areas of leases I/12 Tamar and I/13 Dalit respectively ("the Special Purpose Company and "the Fields"). The sole activity of the Special Purpose Company will be holding the rights sold in the Fields.
According to the sale plan, the Special Purpose Company will offer securities to the public including debentures that will be registered for trading on the Tel Aviv Stock Exchange Ltd ("Offering" and "TASE", respectively), and the Special Purpose Company will use the funds raised from the Offering to purchase the rights in the Fields that are sold by the Partnerships.
According to the Partnerships' forecast of sources and uses of funds, as of the report date, and the Partnerships' obligation to distribute profits suitable for distribution, as stipulated in the partnership agreements dated July 1, 1993 (as modified from time to time), as detailed in section 4 of the Periodic Reports, the profits from the said sale, and profits from future sales of all the Partnerships' holdings in the Fields, as required by the Gas Outline Plan, are expected to be mainly used by the Partnerships to distribute profits (including the distribution of advance tax payments, as stated in section 4.3.3 of the Periodic Reports), and for early repayment of debentures, as stipulated in sections 7.22.1(c) and (d) of the Periodic Reports.
In parallel to advancing the said Offering, the Partnerships are continuing to assess various alternatives for the sale of the balance of their holdings in the Fields, as required by the Gas Outline Plan, as stated in section 7.30.1(e) of the Periodic Reports.
Warning of forward looking information – the estimates of the Partnerships concerning the sales plan and the use to be made of the profits from the sale and profits from future sales, as stated above, are forward looking information in the meaning of the Securities Law, 1968, which are subject to obtaining all the authorizations required in law including approval of the Board of Directors of the General Partner, approval of the Commissioner to transfer the rights to the Special Purpose Company, approval of the Petroleum Commissioner at the Ministry of National Infrastructures, Energy and Water, receipt of a permit from the Securities Authority to publish the Offering prospectus, receipt of approval from the TASE to register the issued securities, and others, and the existence of suitable market conditions to carry out the Offering by the Special Purpose Company, and there can be no certainty that these will take place. Nothing in this report shall create any obligation on the part of the Partnerships to carry out the Offering or be considered an offering to the public and/or an invitation to purchase securities of the Partnerships and/or of the Special Purpose Company. Furthermore, nothing stated in this report shall be deemed an announcement and/or undertaking of the distribution of profits.
This is a convenience translation of the original HEBREW immediate report issued to the Tel Aviv Stock Exchange by the Company on April 25, 2017.
About The Delek Group
The Delek Group, Israel's dominant integrated energy company, is the pioneering leader of the natural gas exploration and production activities that are transforming the Eastern Mediterranean's Levant Basin into one of the energy industry's most promising emerging regions. Having discovered Tamar and Leviathan, two of the world's largest natural gas finds since 2000, Delek and its partners are now developing a balanced, world-class portfolio of exploration, development and production assets with total gross natural gas resources discovered since 2009 of approximately 40 TCF.
In addition, Delek Group has a number of assets in downstream energy, water desalination, and in the finance sector.
For more information on Delek Group please visit www.delek-group.com