Overview
Adira Energy Ltd. (CVE:ADL, OTCBB:ADENF , FRANKFURT:AORLB8) is an oil and gas company aiming to develop energy resources in Israel to help the state achieve energy independence. The company has both 3 offshore licenses including: the Eitan, Gabriella, Yitzhak, and Samuel, and one onshore license, the Eitan.
Recently Adira received results from two gross perspective Independent Resource Reports (NI 51-101) from Gustavson Associates on the Gabriella and Yitzhak Licenses titled “Report for License #378 / Gabriella, Offshore Israel” and “Report for License #380 / Yitzhak, Offshore Israel” dated September 06, 2011.
In February 2011, Adira closed a $6,500,000 non-brokered private placement, issuing 10,483,871 common shares to Quantum Partners LP and the Company is sufficiently capitalized with funds to complete exploration initiatives to pre-drilling.
Investment Highlights
- Offers investors a unique opportunity to participate in a previously unexplored, new Oil& Gas frontier, Isreal
- First Israeli based TSX.V listed company with pure & exclusive exposure to the recent Israeli offshore gas discoveries
- working interest and operator of three offshore licenses and one offshore license
- Indication of MMB resource potential onshore and offshore
- 3D geophysics now complete on 3 offshore licenses
- Experienced Board of Directors and Proficient Corporate & Technical Management Team in Toronto and Tel Aviv
Adira Current Resource Summary * – Gabriella and Yitzhak
*As referred to in the Gustavson Associates NI 51-101 report titled “Report for License #378 / Gabriella, Offshore Israel” and “Report for License #380 / Yitzhak, Offshore Israel”
Oil and Gas in Israel
Recent oil and gas discoveries in Israel indicate production potential, supported by estimates from the US Geological Survey that a mean 122 Tcf of recoverable gas lies in the Levant basin. Since 2009, 25 Tcf discoveries were made as well as two large deep-water gas discoveries in Israeli waters, the Tamar 8.7 Tcf (1.5bn boe) and Leviathan 16 Tcf (2.7bn boe). Significant oil prospects were also identified beneath the Leviathan gas discovery, one with 17% probability of success and 3bn boe, and another with 8% probability and 1.2bn boe.
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Chief Properties
Offshore Licenses – Levant Basin, Mediterranean Sea
Adira’s offshore licenses include the Gabriella, Yitzchak, and Samuel Licenses. It is the sole operator at Gabriella and Yitzchak licenses, and co-operates the Samuel license with partner, Geo Global Resources Inc.
The Gabriella license covers 96,371 acres, encompassing an oil target of Jurassic fractured carbonates at 4,900m. Historical work includes one well drilled to 5,823 m in the 1990s, which tested 500 bpd oil (44-47 API) and was commercially viable though never productive due to technical and financial obstacles. Adira entered a Joint Operating Agreement with Modiin Energy Limited Partnership and Brownstone Energy Inc. for Gabriella, where Adira owns a 15% interest and an additional 15% back-in option from Modiin upon discovery and at cost.
The Yitzhak license covers 31,689 acres, where mid-Jurassic fractured carbonates are found at 4,600 m. Previous exploration includes a well drilled in the 1970s to 4,423 m and two wells, Yam Yafo-1 and Yam Yafo-2 drilled to 4,890-4,995m and 5,315 m respectively, where significant structural highs were discovered. Adira entered a JOA, where it owns an 85% interest in Yitzhak, and Brownstone owns the remaining 15%.
The Samuel license covers 89,205 acres, where Adira’s is targeting lower Cretaceous carbonates at 2000m. Historical work includes the Yam-2 well where oil was tested in the Jurassic, the Ashdod oil field also in Jurassic, and the Heletz oil field in lower Cretaceous. 2D surveying indicates that DHI is present and 45 km2 of 3D OBC (ocean bottom deployed cables) surveying is under way. Adira entered a JOA for Samuel with GGR, Brownstone, and Pinetree Capital Ltd., where Adira holds a 38.25% interest in the license.
As of August 2011, Adira has acquired 2D seismic data, submitted a preliminary resource report to the Israeli government, and completed 3D surveying for all three offshore licenses. Current works include the evaluation of prospective drill targets, detailed drill planning, resource evaluation and risk assessment from fast-track processing, and strategic selection in license and permit applications. The company also plans to process the 3D data and incorporate it into potential hydrocarbon reports and procure a drilling contractor by mid-2012 so it may begin drilling one well at each license in the last quarter of 2012.
Eitan Onshore License – Hula Valley, Northern Israel
Adira’s 100% owned onshore Eitan gas license covers 31,000 acres in the Hula Valley of northern Israel. Historical work at Eitan includes 42 drilled wells. Current targets include: conventional gas in Pleistocene sands and Lumachelle conglomerates at a depth of 200 m and unconventional gas in Pleistocene, lignite, and sub-bituminous coal 40 m thick at 600 m and bituminous coal, 20 m thick at 1000m.
As of August 2011, 143 km of 2D seismic-reprocessed coring and testing is under way at the two unconventional gas targets to evaluate the field’s development potential.
A 1000 meter well is cored through the first interval of coal at approximately 625 meters and is now under desorption for gas content. Core samples will subsequently be selected for laboratory analysis. Drilling at another potential coal zone is also planned, and once the zone is located, this coal will also be cored if possible.
Plans for a follow-up drill program and economic feasibility study will follow the completion of desorption and absorption work.
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Management
Hezi Kugler- Chief Executive Officer
Hezi has extensive experience in the energy infrastructure field in general and in Israel’s hydrocarbons market in particular. Prior to his position as Director General of Israel’s Ministry of National Infrastructures from 2006 – 2009, he was a leading project finance lawyer on major projects in the energy and water sectors in Israel. During his tenure as Director General, he was responsible for overseeing Israel’s power sector and oil and gas exploration and development on behalf of the government.
Mr. Kugler led Israel’s negotiations with BG on development of the Gaza Marine natural gas reservoir off shore from Israel / the Palestinian Authority; he initiated Israel’s first LNG project and served as co-chairman of the government tender committee; he supervised closely development of Israel’s natural gas transmission system; and was responsible for development of Israel’s oil and LPG imports networks carried out through government-owned companies under his supervision. He holds a BA in Political Science from Bar-Ilan University and an LLB from Tel-Aviv University.
Gadi Levin- Chief Financial Officer
Gadi is a chartered accountant with many years of experience in the public and private equity markets. His experience spans multiple jurisdictions including South Africa, England and Israel. He has a Bachelor of Commerce degree in Accounting and Information Systems, has received his Chartered Accountant designation in South Africa and has an MBA from Bar Ilan University in Israel.
Alan Friedman – Executive Vice President – Corporate Development, Director
Co-Founder Adira Energy. Senior roles in resource public market sector and emerging markets covering acquisitions, disposals, financings and investor communications. Over the past 10 years, has managed or facilitated numerous successful going public transactions (IPO & RTO) on TSX and TSX-V as well as facilitation of financings in excess of $100m. Various roles in TSX companies including Afriore Ltd., Talon Metals Corp. and Auryx Gold Corp.
Glen Perry – Vice President Exploration
Glen has 40 years of exploration and development experience, specialized in drilling operations and project execution. Masters in Petroleum Engineering. Served as a Director, COO and President of Zion Oil and Gas in Israel. Prior experience includes; Consultant to Delek Drilling; Director of National Petroleum; Executive with Prairie Producing Company, Exxon and Energy Reserves Group.
Moshe Politi – Chief Geologist
Moshe has 39 years of experience, specializing in the integration of multi-disciplinary aspects and methodologies of geology and geophysics into viable prospects in various environments: onshore, offshore, shallow and deep prospects, structurally complex (overthrust) and stratigraphic plays. Moshe received his Bachelor and Master Degrees in Geology from The Hebrew University in Jerusalem and is currently engaged in his PhD studies in Jerusalem.
Colin Kinley – Senior Advisor, Director
Colin has 30 years of international resource exploration and development expertise. Founding member of Layne Energy and for 27 years Senior VP of Layne Christensen Company (NASDAQ). Key contributor to Layne’s significant growth from $4 to $58/share. Kinley has spent his career in integrated energy project execution and has a keen sense of resource economics.
Most recently, as CEO of Saber Energy, established over 40 TCF Gas in Place in Botswana. Responsible for the establishment of multiple frontier resource exploration plays and developments.
Dennis Bennie – Chairman, Independent Director
Co-Founder Adira Energy. Founder and CEO of XDL Capital; Co-founder, Former Chairman and CEO of Delrina Corporation; former Chairperson of Canada Israel Political Affairs Committee (CJPAC).
Eli Barkat – Independent Director
Chairman and Co-founder of BRM, a recognized figure in the Israeli business community, with more than 20 years of entrepreneurial, investment and business management experience.
Sheldon Inwentash – Independent Director
Chairman and CEO of Brownstone Energy. More than 20 years of experience in the investment industry and a deep understanding of progressive investment and financial management strategies. A Chartered Accountant, Mr. Inwentash is also the Chairman and CEO of Pinetree Capital Ltd., a Canadian investment company with a portfolio of investments primarily in the resource and energy sectors.
Yael Reznik Cramer – Independent Director
VP Business Development of BRM Group, (major shareholder of Adira Energy). Currently sits on the boards of Backweb and Schema. She is a Certified Public Accountant in Israel and holds a B.A degree in Accounting and Economics from the Hebrew University in Jerusalem and an MBA from Tel-Aviv University.
