Gabi Ashkenazi. To actively participate in comapny's financing round
Photo: Yaron Brener

Ashkenazi to chair oil and gas company

Former IDF chief of staff appointed chairman of board of Shemen Oil and Gas Exploration, will hold 75% position for which he will earn NIS 100,000 in addition to options for 3% of company's stock in return for strategic consulting services

Former IDF Chief of Staff Gabi Ashkenazi has been appointed chairman of the board of Shemen Oil and Gas Exploration which is currently exploring at the Shemen license (formerly Med Ashdod, offshore Ashdod), the company stated in its prospectus issued on Sunday.


According to the terms of the agreement, Ashkenazi will provide strategic assistance and consulting by actively participating in the completion of the company's financing round.


Furthermore, he will assist in the company's strategic planning and drive gas and oil prospecting and production business opportunities. He will also represent the company vis-à-vis the authorities and investors, all within a 75% employment agreement.


His contract further stipulates that the appointment of members of the board shall be subjected to his consideration.


The contract has a three-year term and includes a NIS 100,000 ($27,500) monthly salary, including VAT. Ashkenazi will be fully reimbursed for car leasing and per diem and other reasonable expenses of up to NIS 10,000 ($2,750) he incurs in the course of his duties (e.g. traveling, accommodation, etc).


Furthermore, the former army chief will receive a company mobile phone and will be reimbursed for phone expenses and the company will also pay for business class traveling expenses and for accommodations in four or five star hotel expenses.


Ashkenazi will also receive non-negotiable stock purchase warrants at a strike price of NIS 37.5 ($10.34) per share, which once exercised will be worth a 3% stake in the company. The strike price is the same as Shemen's recent private offering on August 2011.


According to the prospectus, the company is expected to raise at least NIS 100 million ($27.5 million) for its planned drilling program.


Click here to read this report in Hebrew



פרסום ראשון: 11.07.11, 13:17
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