Delek Group (TASE: DLEKG, OTCQX: DGRLY) ("the Company") announced that the following report was published by its Delek Drilling - Limited Partnership and Avner Oil Exploration subsidiaries:
We hereby announce that on January 8, 2012, an agreement for the supply of natural gas was signed between the partnership and other partners of the "Tamar" lease ["sellers" or "Partners" and "Tamar project" respectively] and Dalia Power Energies Ltd. ["Dalia"], under which Dalia will purchase, from the sellers, natural gas for the purpose of operating a power station which it plans to construct ["supply agreement"].
According to the supply agreement, the sellers are committed to supply Dalia with up to 1.38 BCM [billion cubic meters] per year of natural gas for a period of 17 years, starting from the beginning of commercial operation of the power plant that Dalia plans to build ["basic agreement period"], or until Dalia has consumed the volume of gas provided by the agreement, the earlier of the two. The parties have the right to extend the supply agreement period, by up to two more years, if up to said date, not all volumes as provided by the agreement have been consumed.
Dalia is committed to "take or pay," an annual minimum volume of gas, in a volume and in accordance with a formula provided by the supply agreement.
The price of gas provided by the agreement will be determined according to a formula that is based primarily on the cost of generating electricity, as fixed, from time to time, by the Public Services Authority-Electricity, including a "floor price" for the price of gas.
We hereby announce that on January 8, 2012, an agreement for the supply of natural gas was signed between the partnership and other partners of the "Tamar" lease ["sellers" or "Partners" and "Tamar project" respectively] and Dalia Power Energies Ltd. ["Dalia"], under which Dalia will purchase, from the sellers, natural gas for the purpose of operating a power station which it plans to construct ["supply agreement"].
According to the supply agreement, the sellers are committed to supply Dalia with up to 1.38 BCM [billion cubic meters] per year of natural gas for a period of 17 years, starting from the beginning of commercial operation of the power plant that Dalia plans to build ["basic agreement period"], or until Dalia has consumed the volume of gas provided by the agreement, the earlier of the two. The parties have the right to extend the supply agreement period, by up to two more years, if up to said date, not all volumes as provided by the agreement have been consumed.
Dalia is committed to "take or pay," an annual minimum volume of gas, in a volume and in accordance with a formula provided by the supply agreement.
The price of gas provided by the agreement will be determined according to a formula that is based primarily on the cost of generating electricity, as fixed, from time to time, by the Public Services Authority-Electricity, including a "floor price" for the price of gas.
