Avner Oil - Annual Report 2011 - Delek Energy Systems

The main terms of the leases in the Yam Tethys project are as follows:Noa lease:(A)(B)The 1/7 Noa lease (the Noa lease) received on February 10, 2000, stipulates, inter alia, thefollowing special terms:(1) Appropriate effort will be invested to develop the discovery and produce gas.(2) After the first six years of the lease, and every three years thereafter, the lease holderwill submit an updated work plan to the Petroleum Commissioner.The terms of the Noa lease include additional provisions relating to breaches, environmentalinsurance, an abandonment plan, compliance with international treaties and Israeli law,coordination with the security forces and announcement of the operator's identity.Terms of the Ashkelon lease:The 1/10 Ashkelon lease ("the Ashkelon lease) received on June 11, 2002, stipulates, interalia, the following special terms:(1) The lease is granted for production of natural gas only. No other use will be made ofthe lease area, seabed and subterrain in the lease area.(2) Natural gas will be delivered from the platform/reservoir in accordance with the NaturalGas Sector Law.(3) The terms of the Ashkelon lease include additional provisions relating to preparation ofreservoir reports at the end of each production year, breaches, environmentalinsurance, abandonment plan, compliance with international treaties and Israeli law,coordination with the security forces and announcement of the identity of the operator.It is noted that in addition to the aforesaid, a binding work plan has not been preparedfor the Noa and Ashkelon leases.7.3.3 Compliance with the terms of the work plan in the Yam Tethys projectPeriodDescription of the work plan defined for theperiodDescription ofwork planitemscompleted inthe periodDescription ofwork planitems not yetcompleted inthe period2009-2011 As set out above, the Ashkelon lease was grantedin June 2002 and the Noa lease was granted inFebruary 2000. At the date of the report, there isno binding work plan for this period.--- ---7.3.4 Future binding work plan according to the terms of the oil asset in the Yam Tethys projectPeriodDescription of the updated work plan definedfor the periodEstimated workplan budget(USDthousands)(divided intothe main items)ThePartnership'seffective shareof the totalbudget(USDthousands)(divided intothe main items)2012-2014 As set out above, the Ashkelon lease was grantedin June 2002 and the Noa lease was granted inFebruary 2000. At the date of the report, there isno binding work plan for these leases in the period.--- ---A-16