Avner Oil - Annual Report 2011 - Delek Energy Systems

Dalit leaseDescription %Theoretical expenses in the work plan for the oilasset (without royalties)100%Payments (derived from the expenses) at the level of the oil assetSummary of the calculation methodfor royalties or payments (withreference to the agreement)Operator (0%) The operator is entitled toreimbursement of direct expenses forits duties as operator. The partnersare jointly reviewing the option ofsetting operator's fees that will be paidfor indirect expenses.Total effective rate of expenses at the level ofthe oil assetShare of the equity holders of the Partnership inthe oil asset's expenses (linked)Share of the equity holders of the Partnership inthe effective rate of revenues, at the level of theoil asset (before other payments at the level ofthe Partnership)On the level of the Partnership100%15.625%15.625%Payments (derived from the expenses) in respect of the oil asset and at the level of the Partnership (thefollowing percentages will be calculated in accordance with the Partnership’s share in the oil asset)The general partner in the PartnershipEffective share of expenses for exploration and 15.625%development of the oil asset, attributable toequity holders of the Partnership 67In accordance with the partnershipagreement, the general partner isentitled to the higher of 7.5% of thePartnership's exploration expenses orUSD 40,000 a month on a quarterlycalculation.67According to the Limited Partnership agreement, when the Partnership’s exploration expenses exceed USD 1.6million per quarter, the effective share increases to 16.8%.A-56