Avner Oil - Annual Report 2011 - Delek Energy Systems

7.9 Petroleum licenses that were returned, transferred and expired in 2009-2011Following discussions with the Petroleum Commissioner regarding a number of licenses held bythe Partnership, Noble and Delek Drilling, and in light of the intention of the Partnership and DelekDrilling to focus their exploration activities in certain license areas, the Partnership, Delek Drillingand Noble have reached an arrangement with the Petroleum Commissioner, whereby theyrelinquish their rights in the Ruth E/369, Ruth F/369 and Zurim licenses 146 and have also signedagreements to transfer their rights in a number of other licenses as set out in sections ‎7.26.9and ‎7.26.10 below. Accordingly, on January 9, 2011 an application was submitted in accordancewith section 76 of the Petroleum Law to receive approval for the transfer of part of their rights in theRuth D license and the Alon E license (in this section - "the Ruth and Alon Licenses"), the Avialicense and the Keren License (in this section - "the Avia and Keren Licenses"), so that the rate ofthe Partnership' rights will not exceed 25% (12.5% each) and the rate of Noble's rights will notexceed 25%.7.9.1 On November 29, 2011, the Commissioner gave notice that the Ruth and Alon licenses and theAvia and Keren licenses would be extended as set out in sections ‎7.26.9 and ‎7.26.10 below.7.9.2 Further to the foregoing, on January 30, 2012, the Partnership submitted an appeal to the Ministerof Energy against the Commissioner's decision concerning the Avia and Keren licenses.7.9.3 The Partnership, Delek Drilling and Noble have also applied to the Petroleum Council for approvalof their continued possession of the Ruth C license 147 , as an additional license in addition to the 12licenses, as well as license areas exceeding four hundred thousand (400,000) hectares, inaccordance with the provisions of section 17 of the Petroleum Law. As of the date of the report, theMinister's decision on the appeal has not yet been received.146147It is explicitly stated that Noble had no rights in the Zurim license.It should be noted that up until December 31, 2011, an amount of USD 2,415 thousand was invested in the Ruth Clicense (this amount is calculated on the basis of the cumulative investment in Ruth A, Ruth B, Ruth C and Ruth Dup to December 31, 2011 of USD 9.66 million and is based on the Ruth C license area (approx. 400 sq.km.)compared with the total area for the Ruth A, Ruth B, Ruth C and Ruth D licenses (approx. 1,600 sq.km.). Theseamounts were recorded as an expense in the statement of income.A-119