Adira backs into Israeli permits

Adira Energy has signed an agreement with Geo Global Resources and its subsidiary, Geo Global Resources (India) concerning activity offshore Israel.

Offshore staff

TORONTO, Ontario -- Adira Energy has signed an agreement with Geo Global Resources and its subsidiary, Geo Global Resources (India) concerning activity offshore Israel.

GGR has agreed to assign to Adira its option to acquire a participating interest of up to 5% in its operated Petroleum Licenses 347 (Myra) and 348 (Sara) to Adira.

The two permits are in the Levantine basin in the Mediterranean Sea, in waters close to 1,400 m (4,593 ft) deep. They are also 35 km (21.7 mi) from Noble’s 8.4 tcf Tamar 1 and Tamar 2 gas discoveries, and adjacent to the same company’s 500 bcf Dalit find.

Adira says 3D seismic data has been acquired and processed, with initial resultant data submitted to Israel’s Ministry of National Infrastructures. The Sara license covers an area of around 404 sq km (156 sq mi) and the Myra permits roughly 396 sq km (153 sq mi).

Next month, initial exploration prospects should be drawn up on both licenses, followed in October by a report on the hydrocarbon system in the permits. Final preparation of the prospects, along with well plans, should be completed by Dec. 31, in line with the agreed work program.

Adira adds that a drilling contractor should be engaged by March 31, 2011, with the first well spud expected next summer.

“We feel that these licenses have the potential to be world class discoveries and look forward to being able to make a significant contribution to the consortium.” said Adira CEO Ilan Diamond.

The company has four Israeli petroleum exploration licenses, including three offshore. Gabriella is 10 km (6.2 mi) offshore between Netanya and Ashdod; Yitzhak is 17 km (10.6 mi) offshore between Hadera and Netanya; and Samuel is adjacent to the coast between Ashkelon and Bat-Yam.

08/30/2010

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