Partners settle offshore Israel license impasse, set drilling plans

Partners in the Gabriella license offshore Israel have agreed to resolve their disputes over their respective funding obligations.

Offshore staff

TORONTO – Partners in the Gabriella license offshore Israel have agreed to resolve their disputes over their respective funding obligations. These caused drilling of a first exploratory well earlier this year to be suspended.

Under the settlement and release agreement, Adira Energy, Modi’in Energy, and Brownstone Energy will waive and release each other from any claims and demands they have with respect to the license. Additionally, they will fund their proportionate share of costs in connection with the attempted drilling of the first well.

The agreement also gives the partners rights to participate in any farm-out of their interests in the concession realized by the other members, for a period of one year. Adira also agrees to relinquish its 15% buy back option and management fee, and reduce its overriding royalty interest to 2.625%.

Adira has applied to Israel’s Ministry of Energy and Water for an extension of the date for execution of the drilling contract to Feb. 28, 2014, and for the spud of the first well to Dec. 31, 2014.

As for the offshoreYitzhak license, the company is seeking an extension to firm up a drilling contract to Sept. 30, 2014, and for the spud of the first well to June 30, 2015.

7/02/2013

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