Adira Energy Corporation (TSXV: ADL; Bulletin Board: ADENF; XETRA: AORLB8) has filed a preliminary short form prospectus with the securities regulatory authorities in Ontario, British Columbia and Alberta for an equity offering in Canada, the US, and the UK to raise a gross C$15 million. The company will use net proceeds from the offering to finance natural gas exploration activities at the Gabriella and Yitzhak offshore licenses in 2012, and for general corporate purposes.
The company has not yet set the final terms, size, or price of the offering, which will be determined by market conditions. The underwriters will have an 30-day over allotment option to buy up to an additional 15% of the number of shares offered.
In March, Adira and Modiin Energy LP (TASE:MDIN.L) that the Gabriella and Yitzhak fields have a best estimate of 232.2 million barrels of oil, including 110.1 million barrels of contingent oil. Together, the Gabriella and Yitzhak licenses have a best estimate of 1.8 trillion cubic feet of natural gas. The discoveries were made in Jurassic strata, located in shallow water 24 kilometers northwest of Tel Aviv. The estimates are based on a 3D seismic survey by Netherland Sewell & Associates Ltd. (NSAI).
Adira owns 30% of the Gabriella license and 85% of the Yitzhak license. Modiin, controlled by Tzahi Sultan and Nochi Dankner through IDB Holding Corp. Ltd. (TASE:IDBH).
Adira's share price closed at C$0.22 on the Toronto Stock Market Venture Exchange, giving a market cap of $C35 million, and at $0.30 on Wall Street.
Published by Globes [online], Israel business news - www.globes-online.com - on April 5, 2012
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