Delek Group has begun preliminary negotiations with Noble Energy International, Ltd. (Noble Cyprus) for the acquisition of 19.9% of its share in Block 12 in Cyprus. For a general description of the rights in Block 12 in Cyprus and the Production Sharing Contract, see Section 1.7.10 of the Company's annual report as of December 31, 2014, as published on March 30, 2015 (Ref.: 2015-01-067483). It should be noted that the other partners in Block 12 are Delek Drilling - Limited Partnership and Avner Oil Exploration - Limited Partnership hold, each, in 15% of the rights. The discussed consideration amount for 19.9% of the working interest, held by Noble Cyprus as stated above, in the scope of the initiated negotiations, is approximately US $ 155 million.
It is important to note that this negotiation is in its initial stage which is not binding and not exclusive, and there is no certainty that the above mentioned negotiations will mature into any binding agreement between the parties, as well as the conditions as determined in the binding agreement, if signed. There can be no certainty that the above mentioned conditions will be the ones that are determined, if determined, as prescribed, and it is not known what the timetable will be in the negotiations.
The transaction, as it progresses, is subject to various approvals, including the approval of the competent organs of the Company and Noble Cyprus, the approval of the Republic of Cyprus as well as other approvals as required.
This is a convenience translation of the original HEBREW immediate report issued to the Tel Aviv Stock Exchange by the Company on May 31, 2015.
