Adira Energy Corporation (TSXV: ADL; Bulletin Board: ADENF; XETRA: AORLB8) has sold 5-10% of its three offshore exploration licenses in Israel - Gabriella, Shmuel, and Yitzhak to Tohar Hashemesh Energy Ltd., owned by Dr. Efraim Eligula, for $3.2 million, half of which covers Adira's costs to date in the licenses, and half of which will be paid when Tohar Hashemesh registers its stakes with the Petroleum Supervisor
Adira sold 5% of its rights in the Gabriella license, 10% of the Yitzhak license, and 10% of the Samuel license. . After the sale, Adira will own 10% of the Gabriella license, 50% of the Yitzhak license, and 31.25% of the Samuel license.
The Petroleum Supervisor at the Ministry of Energy and Water Resources has also granted a further extension to sign a drilling contract for the Samuel license through March 2013.
Tohar Hashemesh has an option through March 2013 to acquire an additional 10% of the Yitzhak and Samuel licenses, and until then it will be responsible for the licenses' funding obligations. If Yitzhak and Samuel does not exercise the options, Adira will return these expenditures within six months.
Adira Energy partners in the Gabriella and Yitzhak licenses are Modiin Energy LP (TASE:MDIN.L) and Canada's Brownstone Energy Inc. (TSX: BWN; Bulletin Board: BWSOF) subsidiary Brownbarb (Israel) Inc.
In a separate development, Tohar Hashemesh is making a reverse merger with stock market shell LifeWave Hi-Tech Medical Devices Ltd. (TASE:LIFE) to list on the TASE.
Adira CFO Gadi Levin said, “This transaction is part of our stated goal to leverage the working interests in our licenses to attract new partners who will share in the investment required to prove up these blocks." He added an exploratory will be drilled at the Gabriella license in the first half of 2013, followed by drilling at the Samuel and Yitzhak licenses.
Published by Globes [online], Israel business news - www.globes-online.com - on October 29, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012