Adira Energy holds a combined minimum interest of 38.25% in the Samuel License held through subsidiaries Adira Oil Technologies and Adira GeoGlobal.
The other consortium members are comprised of GeoGlobal Resources (India), Brownstone Ventures and Pinetree Capital. A gross overriding royalty in an amount equal to 3% shall be granted to and registered in the name of Adira GeoGlobal.
Adira GeoGlobal and GeoGlobal Resources (India) have been designated as joint operators of the Samuel License. Adira GeoGlobal shall be paid an aggregate operating fee equal to 7.5% of the cumulative direct costs incurred in connection with operating the Samuel License.
The Samuel License area is located adjacent to the coast of Israel and runs between Ashkelon and Bat Yam. The license is contiguous and south east of the company’s Gabriella License.
According to Adira Energy, the license area is in shallow water with many of the key targets in less than 100mt of water. Shallow water drilling allows the company to make use of jack up rigs. The prospects are located along the existing Mari B pipeline and close to shore. The Samuel License has been granted for an initial period of three years.
Ilan Diamond, CEO of Adira Energy, said: “Since Adira’s inception, we have been at the forefront of the burgeoning oil and gas sector in Israel. We look forward to commencing our 3D acquisition program later this year and if warranted, drilling our first offshore exploration well during 2011.”
Adira Energy has four petroleum exploration licenses: Eitan, Gabriella, Yitzhak and Samuel. These licenses are located respectively on-shore in the Hula Valley of Northern Israel, 10km offshore between Netanya and Ashdod, 17 km offshore between Hadera and Netanya and adjacent to the shore between Ashkelon and Bat Yam. The company has also a 70% participation right in the Notera license in the Hula Valley.
