TORONTO, Canada – Adira Energy has entered into a series of farm-out agreements in the Yitzhak license offshore Israel.
These are structured in part to limit Adira’s share of exploration costs. Assuming approval from Israel’s Petroleum Commissioner, these will reduce the company’s working interest in the concession from 85% to 60%.
Norway-based AGR Group will take a 5% stake, and will assume the role of lead operator, with Adira serving as co-operator.
Ellomay Oil and Gas 2011 LP will take a 20% working interest in the license to Ellomay. In addition, Adira has formalized a Letter of Intent with Brownstone Energy enabling formal registration of Brownstone’s 15% working interest.
Adira CEO Hezi Kugler said: “The Yitzhak license, with its resource estimates of gas and condensate, presents an excellent opportunity for Adira and its partners to develop the license in a short time frame, and commence drilling by 4Q 2012.
“We have significantly reduced financial exposure and continue to de-risk the Yitzhak license while obtaining international acclaimed engineering support and substantial financial backing from recognized partners in the field.”