Avner Oil - Annual Report 2011 - Delek Energy Systems

Dalit leaseParticipation rate %Percentagegrossed up to100% ExplanationsEffective share of oil asset attributable toholders of the Partnership’s equity rightsEffective share attributable to holders ofthe Partnership’s equity rights inrevenues from the oil asset15.625% 100% The Partnership’s holdings in theoil asset are direct holdings.12.94% 87.57% See the calculation insection ‎7.4.7 below.Effective share of expenses forexploration, development or production of15.625% 100% See the calculation insection ‎7.4.8 below.Partnership’s equity rights 63the oil asset, attributable to holders of the7.4.7 Calculation of the effective share of revenues in the Tamar project attributable to equityholders of the PartnershipTamar leaseDescriptionTheoretical annual revenues of the oilasset%100%Summary of the calculation method forroyalties or payments (includingdeduction of expenses and others)(reference to the agreement)Royalties or payment (derived from revenues after the discovery) related to the oil asset:The State (11.34%) Calculated at the wellhead price accordingto the calculation in 2011 for the YamTethys projectTotal (11.34%)Adjusted revenues on the level of the oilassetShare of the adjusted oil asset revenuesattributable to the equity holders of thePartnershipShare of holders of the Partnership’sequity rights in the effective rate ofrevenues, at the level of the oil asset(before other payments at the level of thePartnership)88.66%15.625%13.85%Royalties or payments (derived from revenues after discovery) in respect of the oil asset at the level of thePartnershipShare of holders of the Partnership’s(1.15%) Overriding royalties at a rate of 6% paid toparties and other non-related parties 64 at a rate calculated for royalties to the stateequity rights in payments to relatedthe royalty holders less wellhead expenses6364According to the Limited Partnership agreement, when the Partnership’s exploration expenses exceed USD 1.6million per quarter, the effective share increases to 16.8%The parties entitled to royalties are Cohen Development and Industrial Buildings Ltd. and other entities that are notrelated parties (for further information, see Note 16 to the financial statements).A-53