2010-08-31-2010-08-26
Acquired an option to purchase up to a 5% participating interest in two deepwater licenses; JV partner has right to earn 15% participating interest.
Adira Energy Ltd., Toronto, (OTCBB: ADENF) has acquired an option to purchase up to a 5% participating interest in two deepwater licenses offshore Israel from Geo Global Resources Inc., Calgary, (NYSE Amex: GGR) and its subsidiary Geo Global Resources (India) Inc.
The option will allow Adira to acquire up to a 5% participating interest in petroleum licenses 347 (Myra) and 348 (Sara) for a US$1.2-million consideration, plus prorate share of costs related to the licenses from the date in which Adira acquires the options until the date at which the options are exercised. This cost is not expected to exceed US$250,000.
Brownstone Ventures Inc., Toronto, (Toronto Venture: BWN) is Adira's joint-venture partner in offshore Israel and has the right to earn a 15% participating interest in Adira Energy's interest in all offshore licenses.
The Myra and Sara licenses are in the Levantine Basin in the Mediterranean Sea, in waters approximately 1,400 meters deep. The Sara license covers approximately 404 square kilometers (156 square miles) and the Myra license covers approximately 396 square kilometers (153 square miles).
During the remainder of 2010, it is expected that an initial prospect on each license is to be prepared during September; a report on the hydrocarbon system on the licenses by October, and final preparation of the prospects, together with well plans should be completed by Dec. 31. A contract with a drilling contractor is expected by March 31, 2011, followed by an expected spud date of in the third quarter of 2011.
The Myra and Sara licenses, prior to the exercise option, are held by a consortium of owners comprising Emmanuelle Energy Ltd. (24.161% participating interest), Emmanuelle Energy - Gas and Oil Explorations LP (19.161%), Modiin Energy LP (19.282%), I.P.C. Oil and Gas (Israel) LP (13.609%), The Israel Land Development Co. Ltd. (5%), IDB Development Corp. Ltd. (5%), Blue Water Oil & Gas Exploration Ltd. (8.787%) and GeoGlobal Resources (India) (5% and operator).
Adira chief executive Ilan Diamond says, "We feel that these licenses have the potential to be world class discoveries and look forward to being able to make a significant contribution to the consortium. We believe that Adira is well positioned with interests in five offshore licenses (two deepwater and three shallow water) and two onshore licenses."