Adira secures funds for Israel program

Adira Energy Israel has signed a farm-in financing agreement for its shallow water Gabriella license.

Offshore Staff

TORONTO -- Adira Energy Israel has signed a farm-in financing agreement for its shallow water Gabriella license.

The 390-sq km (151-sq mi) permit, 10 km (6 mi) from the Israeli coast between the cities of Netanya and Ashdod, was awarded to the company last July for an initial three-year term. The minimum work program includes a 3D seismic survey and drilling of one well to a total sub-surface depth of around 5,000 m.

Israel’s Modiin Energy Ltd. Partnership and Modiin Energy General Partners (collectively Modiin) will provide funding for the early license commitments through farming into 70% of certain rights of participation.

Modiin will also pay Adira a royalty of 4.5% on the total wellhead revenue of the rights in oil/gas or other materials produced until such time as costs are recovered. At that point, the royalty payment will increase to 10.5%.

01/28/2010

More in Company News