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Re: None

Thursday, 03/12/2015 4:53:33 PM

Thursday, March 12, 2015 4:53:33 PM

Post# of 54053

The Company is obligated, according to the Petroleum Law, to pay royalties to the Government of Israel on the gross production of oil and gas from the oil and gas properties of the Company located in Israel (excluding those reserves used to operate the wells and related equipment and facilities). The present 12.5% royalty on oil revenues remains unchanged. At December 31, 2014, the Company did not have any outstanding obligation with respect to royalty payments, since to this date, no proved reserves have been found.

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