AMG Oil Ltd. (AMG Oil), through its subsidiary, Adira Energy Corporation (Adira Energy) has received the Gabriella license in Israel. The petroleum license is centered around 10 kilometers (km) off the Israeli coast and stretches from Netanya in the North to Ashdod in the South (about 40 km). It covers a total license area of 390,000 Dunam (around 390 square km or 97,000 acres).

The license area is in shallow water with a depth between 80 and 120 meters, which the company believes will make drilling more cost efficient. The Gabriella license has been granted for an initial period of three years commencing July 15, 2009.

Stephen Pierce, AMG Oil’s senior vice president of geology, said: “During the early 1990’s an oil well located in the area covered by the Gabriella License called “Yam Yafo -1” was drilled and tested. We understand that production tests of the “Yam Yafo -1″ well yielded approximately 500-800 barrels per day, but that technical problems and lack of funds prevented commercial production. We also understand that there is a stratigraphic high with seemingly good closure. With some nine wells within 34 kilometers radius of the central part of the block, we believe that we have a good prospect that is an attractive target for hydrocarbon exploration.”

AMG Oil’s Chief Executive Officer, Ilan Diamond stated: “We are very pleased to have been successfully granted the Gabriella License. Since the Nobel/Delek Tamar gas discoveries – 60 km west of Hadera (Dalit) and 90 km west of Haifa (Tamar) the region where our license is located has become well known to people in the oil and gas community as a very prospective area. The company is fortunate to have a significant block in the region. We continue to plan for the start of our exploration and drilling program. The drilling operations on our “Eitan” license in the Hula valley region of Israel are likely to start ahead of schedule and we now anticipate that drilling will commence during October 2009. Having recently completed the business combination between Adira Energy and the company, as well as successfully completing a previously announced private placement, we are well positioned to commence our drilling operations on the Eitan license in the Hula Valley, Northern Israel, and begin evaluation work on the Gabriella License area.”