Adira has also signed a memorandum of understanding (MoU) with Modiin Energy authorizing Modiin Energy to enter into a drilling contract with Noble Drilling and/or any of its affiliates on behalf of the working interest parties to drill the Gabriella License.
The revise spud date for Gabriella License has been set as 30 June 2013.
As per the LOA, the consortium will finalize the agreement to secure the Noble Homer Farrington rig for a minimum of 75 days for a program that is expected to include one well plus sidetrack.
Under the MoU, Adira will be responsible for providing its share of the Rig Collateral, 30 days prior to the date to be set in the agreement.
Adira also grants Modiin Energy an irrevocable option to purchase a 15% participating interest in the Yitzhak License from Adira.
Adira Energy chief executive officer Jeffrey Walter said with the execution of the letter of award to drill the Gabriella License, Adira continues to advance its exploration program in the Eastern Mediterranean.
"Modiin recognizes that the Yitzhak license is added value to the Gabriella project," Walter said.
