Current DK Stock Info

Israeli oil and gas company Delek Group Ltd. (ticker: DK), GulfSlope Energy, Inc. (ticker: GSPE) and Texas South Energy, Inc. (ticker: TXSO) have entered into a strategic partnership to pursue oil and natural gas opportunities in the Gulf of Mexico.

Delek GOM Investments LLC, a subsidiary of Delek, acquired rights to a 75% record title interest in nine prospects (Photon, Quark, Pomeron, Tau, Tanker, Graviton, Tachyon, Selectron, and Canoe) in the shallow waters of the Gulf of Mexico.

The region is estimated to contain almost 1 billion barrels of recoverable oil and gas equivalent according to John Seitz, Chairman and CEO of GulfSlope and Michael Mayell, President and CEO of Texas South.

The first two exploration wells, at Tau and Canoe, will target multiple shallow supra-salt formations at Canoe and multiple deeper, sub-salt formations at Tau. GulfSlope will be the operator for these wells. The companies expect to start drilling in mid-2018.

GulfSlope will retain a 20% record title interest and Texas South will retain a 5% record title interest in each of these nine prospects.

Upon completion of the drilling operations on the initial prospects, Delek will have the right to participate in up to three additional phases of drilling with respect to the balance of prospects upon identical cost sharing arrangements as set forth in the first prospects. The companies have agreed to establish an area of mutual interest.

Additionally, Delek shall have the right to acquire up to 20% of the issued and outstanding shares of common stock of each of GulfSlope and Texas South based on achieving certain milestones.

Delek shall bear 90% of the gross cost and expense for each well until the test well reaches its objective depth. Thereafter Delek will be responsible for 75% of the costs and expenses and GulfSlope and Texas South will be responsible for their pro-rata ownership interest of all such remaining costs.

In addition, Delek shall pay $1.5 million to the companies (73% to GulfSlope and 27% to Texas South) upon the filing of each well’s exploration plan with the BOEM.

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