GGR awarded three Israeli concessions

A consortium fronted by Adira Energy has been awarded the “Samuel” petroleum license offshore Israel.

Offshore staff

TORONTO -- A consortium fronted by Adira Energy has been awarded the “Samuel” petroleum license offshore Israel.

Adira has a 38.25% in the license held through subsidiaries Adira Oil Technologies (100% owned) and Adira GeoGlobal (60% owned). Other participants are GeoGlobal Resources (India), Brownstone Ventures, and Pinetree Capital.

Adira GeoGlobal and GeoGlobal Resources (India) have been designated as joint operators of the permit, which adjoins the Israeli coast, stretching from Ashkelon to Bat Yam. Samuel also is contiguous and southeast of Adira’s Gabriella license.

The new permit, granted for an initial three-year term, is in shallow water, with many of the target structures in water depths below 100 m (328 ft). The prospects are situated along the route of the Mari B pipeline and close to shore, all of which should lead to cost and time-saving benefits in the event of a development.

Jean Paul Roy, CEO and president of the GeoGlobal Resources group and a joint executive of Adira GeoGlobal, said: “We have found unbreached palaeo structures within the Levantine basin.

“Indicators on numerous 2D seismic lines suggest the 3D program will define the limits of resource within a high quality data region of the basin. This near-shore license has several high-value prospects structurally folded beneath it.”

Geoglobal Resources India (GGR) has also been named operator of the 347 “Myra” and 348 “Sara” offshore licenses. One of its agreements, on submitting an application for Samuel, was that if successful, it would will grant its partners in the Sara and Myra permits an option to purchase up to 12.5%.

Bontan, another Toronto-based company, is part of a consortium that has applied to Israel’s Ministry of Petroleum for the “Michal” license in the Benjamin permit, where GGR is operator with a 5% working interest. If granted, Bontan’s share would be 10.450%.

Kam Shah, CEO of Bontan, said: “We are very pleased that GGR has agreed to become our operator. They bring significant experience and expertise in deep water exploration that will allow our group to ultimately maximize our drilling opportunities in the Eastern Mediterranean.”

Sara and Myra cover a total of around 310 sq mi (803 sq km) in the Levantine basin, close to the Noble-operated 6.3 tcf Tamar 1, Tamar 2, and Dalit natural gas discoveries.

The rights to these licenses are held by a group comprising Bontan’s majority-owned Israel Petroleum Co., Tel Aviv-based Emanuelle Energy, IDB-DT Energy (2010), and PBT, under an agreement entered into on March 24, 2010.

06/18/2010

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