Adira brings in partner to ease costs of wells offshore Israel

Offshore staff

TORONTO – Adira Energy (TSXV: ADL) has entered into a series of farm-out agreements concerning three licenses offshore Israel.

Private Israeli company Tohar Hashemesh Ltd. (THL) will acquire 5% of Adira’s working interest in the Gabriella license, 10% of its Yitzhak license, and 10% of its Samuel license.

These purchases will reduce Adira’s financial commitments. Additionally, Israel’s Ministry of Energy and Water has further extended the deadline for securing permits to execute a drilling contract on the Samuel license.

THL has an option to farm into an additional 10% of Adira’s working interests in Yitzhak and Samuel, exercisable on or before March 31, 2013.

Following approval of the agreements, Adira will have 10% of Gabriella (in addition to a 15% back in option), 50% of Yitzhak, and 31.25% of Samuel.

Gadi P. Levin, CFO of Adira Energy said: “This transaction is part of our stated goal to leverage the working interests in our licenses to attract new partners who will share in the investment required to prove up these blocks.”

The company plans to drill Gabriella during the first half next year, followed by wells on Samuel and Yitzhak later in 2013. These licenses are located respectively 10 km (6.2 mi) offshore between Netanya and Ashdod, 17 km (10.6 mi) offshore between Hadera and Netanya, and adjacent to the coast between Ashkelon and Bat-Yam.

11/01/2012

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