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Adira Energy receives updated resource reports on Gabriella and Yitzhak Licenses offshore Israel

March 13, 2012

TSX.V: ADL

TORONTO, March 13, 2012 /PRNewswire/ – ADIRA ENERGY LTD. (TSXV: ADL) (OTCBB: ADENF) (FRANKFURT: AORLB8). Adira Energy Ltd. (“Adira” or the “Company“) today announced it has received two independent resource reports
(collectively the “Reports“) including a best estimate in aggregate of 232.2 million barrels (“MMbbl“) of oil and condensate, including 110.1 MMbbl of contingent oil, and
1.8 TCF of gas on the Company’s Gabriella License and Yitzhak License
(collectively, the “Licenses”) located offshore Israel. The Reports
were prepared by Netherland, Sewell & Associates, Inc. (“NSAI“) of Houston, Texas and are available on SEDAR (www.sedar.com).

NSAI conducted an assessment of the Gross (100%) Contingent and Unrisked
Prospective Resources located in the #378 / Gabriella block and the
Gross (100%) Unrisked Prospective Resources in the #380 / Yitzhak
block, both as of March 1, 2012. Approximately 465-km(2) of 3D seismic data was acquired in 2010 and 2011 for the Licenses.  
The data was shot on an azimuth of 23 degrees and was processed by CGG
Veritas.  This survey was processed with another smaller 197-km(2) 3-D seismic survey shot on an azimuth of 343 degrees.

The following is a summary of the findings of the Reports as of March 1,
2012:

Summary of Best Estimate Contingent((1)) and Prospective((2)) Resources

     ______________________________________________________________
    |Hydrocarbon       |Classification         |Best Estimate Gross|
    |__________________|_______________________|___________________|
    |Oil (44°- 47° API)|Contingent (Gabriella) |        110.1 MMbbl|
    |__________________|_______________________|___________________|
    |Oil (44°- 47° API)|Prospective (Yitzhak)  |         79.1 MMbbl|
    |__________________|_______________________|___________________|
    |                  |                  Total|        189.2 MMbbl|
    |__________________|_______________________|___________________|
    |                                                              |
    |______________________________________________________________|
    |                                                              |
    |______________________________________________________________|
    |Condensate        |Prospective (Gabriella)|         17.4 MMbbl|
    |__________________|_______________________|___________________|
    |Condensate        |Prospective (Yitzhak)  |         25.6 MMbbl|
    |__________________|_______________________|___________________|
    |                  |                  Total|         43.0 MMbbl|
    |__________________|_______________________|___________________|
    |                                                              |
    |______________________________________________________________|
    |                                                              |
    |______________________________________________________________|
    |Gas               |Contingent (Gabriella) |          110.1 BCF|
    |__________________|_______________________|___________________|
    |Gas               |Prospective (Gabriella)|          641.1 BCF|
    |__________________|_______________________|___________________|
    |Gas               |Prospective (Yitzhak)  |        1,023.2 BCF|
    |__________________|_______________________|___________________|
    |                  |                  Total|        1,774.4 BCF|
    |__________________|_______________________|___________________|

    (1)      Contingent resources are those quantities of petroleum
             estimated, as of a given date, to be potentially recoverable
             from known accumulations using established technology or
             technology under development, but which are not currently
             considered to be commercially recoverable because of one or
             more contingencies. The contingent resources shown in the
             table above have been estimated using probabilistic methods.
             The probability that the quantities of resources actually
             recovered will equal or exceed the estimated amounts for the
             low estimate is 90%, for the best estimate is 50% and the high
             estimate is 10%. Based on analogous field developments,
             assuming a discovery is made, the best estimate contingent
             resources on the Gabriella and Yitzhak block have a reasonable
             chance of being commercial.

    (2)      Prospective resources are those quantities of petroleum
             estimated, as of a given date, to be potentially recoverable
             from undiscovered accumulations by application of future
             development projects. The prospective resources included in
             this report indicate exploration opportunities and development
             potential in the event a petroleum discovery is made and
             should not be construed as reserves or contingent resources.
             There is no certainty that any portion of the prospective
             resources will be discovered. If discovered, there is no
             certainty that it will be commercially viable to produce any
             portion of the prospective resources.

             The prospective resources shown in the table above have been
             estimated using probabilistic methods and are dependent on a
             petroleum discovery being made.  If a discovery is made and
             development is undertaken, the probability that the
             recoverable volumes will equal or exceed the unrisked
             estimated amounts above for the low estimate is 90%, for the
             best estimate is 50% and the high estimate is 10%. Based on
             analogous field developments, with the assumption a discovery
             is made, the unrisked best estimate prospective resources on
             the Gabriella and Yitzhak blocks have a reasonable chance of
             being commercial. 

Jeffrey E. Walter, Chief Executive Officer commented: “We embrace the evaluation from Netherland Sewell as further
confirmation that the Gabriella and Yitzhak licenses are high quality
exploration assets within Adira’s portfolio. The initial drilling
target for the Gabriella well will be the Jurassic carbonates which
have tested oil within the Gabriella license. Netherland Sewell has
classified these as contingent resources with a best estimate of 110.1
MMbbl of oil. By including associated gas, this estimate would increase
to 128.4 MMboe.

Using high quality 3-D seismic we were able to properly image the
Yitzhak structure and significantly increase previous estimates.  The
targeted Jurassic carbonates in the Yitzhak license are estimated to
contain 79.1 MMbbl in Netherland Sewell’s report. Associated gas would
increase this estimate to 92.3 MMboe. Netherland Sewell estimates a 40%
chance of geologic success for the undrilled Jurassic resource
potential of Yitzhak making this an attractive target for initial
drilling. Since Adira’s net interest in the Yitzhak license is 60%, the
combined net effect from the Gabriella and Yitzhak licenses is an
increase of over 19% from previous estimates of the Jurassic resources
for our shareholders.

Projects with similar metrics to Gabriella and Yitzhak have been
successfully and commercially developed in many locations around the
world. As we progress with our drilling plans on both these Licenses,
we believe that Adira and its partners could add oil to Israel’s
expanding natural resources.”

Gabriella License – Contingent Resources

The Gabriella License is located approximately 24 kilometers northwest
of Tel Aviv, in the waters offshore Israel. The block covers an area of
approximately 390 square kilometers (97,000 acres) and is in water
depths that range from 100 meters on the east side of the block to just
over 425 meters on the southwest side of the block.  One well, the Yam
Yafo 1, has been drilled on the block.

The estimated gross (100%) contingent resources from the Jurassic
Formation, as of March 1, 2012 are:

Summary of Gross (100 percent) Contingent Resource((1)) Estimates, Jurassic Oil Prospects

     _________________________________________________
    |Category           |  Oil  |Gas(2)|Oil Equivalent|
    |                   |(MMbbl)|(Bcf) |  (Mmboe(3))  |
    |___________________|_______|______|______________|
    |Low Estimate  (1C) |  29.7 | 29.7 |       34.6   |
    |___________________|_______|______|______________|
    |Best Estimate (2C) | 110.1 |110.1 |      128.4   |
    |___________________|_______|______|______________|
    |High Estimate  (3C)| 264.4 |264.4 |      308.5   |
    |___________________|_______|______|______________|

    (1)      Contingent resources are those quantities of petroleum
             estimated, as of a given date, to be potentially recoverable
             from known accumulations using established technology or
             technology under development, but which are not currently
             considered to be commercially recoverable because of one or
             more contingencies. The contingent resources shown in the
             table above have been estimated using probabilistic methods.
             The probability that the quantities of resources actually
             recovered will equal or exceed the estimated amounts for the
             low estimate is 90%, for the best estimate is 50% and the high
             estimate is 10%. Based on analogous field developments,
             assuming a discovery is made, the best estimate contingent
             resources on the Gabriella block have a reasonable chance of
             being commercial.

    (2)      Based on well test information, a gas-oil ratio of 1000
             standard cubic feet per barrel was estimation for the 1C, 2C
             and 3C estimates.

    (3)      BOEs may be misleading, particularly if used in isolation. A
             BOE conversion ratio of 6 Mcf: 1bbl is based on an energy
             equivalency conversion method primarily applicable at the
             burner tip and does not represent a value equivalency at the
             wellhead.

Gabriella License – Prospective Resources

The estimated unrisked gross (100%) prospective gas resources for these
prospective reservoirs, as of March 1, 2012 are:

Summary of Gross (100 percent) Prospective Resource((1)) Estimates of Prospective Reservoirs

     ___________________________________________________________________
    |           |             |Unrisked Gross (100 percent) Prospective |
    |           |             |                Resources                |
    |___________|_____________|_________________________________________|
    |Prospective|   Category  |Oil Resources|Condensate| Gas |   Oil    |
    | Reservoir |             |   (MMbbl)   | (MMbbl)  |(Bcf)|Equivalent|
    |           |             |             |          |     |(Mmboe(2))|
    |___________|_____________|_____________|__________|_____|__________|
    |   Miocene |Low Estimate |       0.0   |     1.4  |69.9 |    13.0  |
    |___________|_____________|_____________|__________|_____|__________|
    |           |Best Estimate|       0.0   |     7.0  |257.1|    49.8  |
    |___________|_____________|_____________|__________|_____|__________|
    |           |High         |       0.0   |    25.7  |773.5|   154.6  |
    |           |Estimate     |             |          |     |          |
    |___________|_____________|_____________|__________|_____|__________|
    |           |             |             |          |     |          |
    |___________|_____________|_____________|__________|_____|__________|
    |Talme Yafe |Low Estimate |       0.0   |     0.8  |39.6 |     7.4  |
    |___________|_____________|_____________|__________|_____|__________|
    |           |Best Estimate|       0.0   |     4.7  |174.7|    33.8  |
    |___________|_____________|_____________|__________|_____|__________|
    |           |High         |       0.0   |    18.6  |562.6|   112.3  |
    |           |Estimate     |             |          |     |          |
    |___________|_____________|_____________|__________|_____|__________|
    |           |             |             |          |     |          |
    |___________|_____________|_____________|__________|_____|__________|
    |  Gevar Am |Low Estimate |       0.0   |     1.1  |52.2 |     9.8  |
    |___________|_____________|_____________|__________|_____|__________|
    |           |Best Estimate|       0.0   |     5.7  |209.3|    40.6  |
    |___________|_____________|_____________|__________|_____|__________|
    |           |High         |       0.0   |    21.7  |670.7|   133.5  |
    |           |Estimate     |             |          |     |          |
    |___________|_____________|_____________|__________|_____|__________|

    (1)      Prospective resources are those quantities of petroleum
             estimated, as of a given date, to be potentially recoverable
             from undiscovered accumulations by application of future
             development projects. The prospective resources included in
             this report indicate exploration opportunities and development
             potential in the event a petroleum discovery is made and
             should not be construed as reserves or contingent resources.
             There is no certainty that any portion of the prospective
             resources will be discovered. If discovered, there is no
             certainty that it will be commercially viable to produce any
             portion of the prospective resources.

    (2)      The prospective resources shown in the table above have been
             estimated using probabilistic methods and are dependent on a
             petroleum discovery being made.  If a discovery is made and
             development is undertaken, the probability that the
             recoverable volumes will equal or exceed the unrisked
             estimated amounts above for the low estimate is 90%, for the
             best estimate is 50% and the high estimate is 10%. Based on
             analogous field developments, with the assumption a discovery
             is made, the unrisked best estimate prospective resources on
             the Gabriella block have a reasonable chance of being
             commercial.

    (3)      BOEs may be misleading, particularly if used in isolation. A
             BOE conversion ratio of 6 Mcf: 1bbl is based on an energy
             equivalency conversion method primarily applicable at the
             burner tip and does not represent a value equivalency at the
             wellhead.

The table below illustrates the geological risk elements and overall
probability of geological success for each of the three prospective
reservoirs.

Risk Elements

     _____________________________________________________________________
    |Prospective|      Geologic Risk Elements (Percent)  |                |
    | Reservoir |                                        |                |
    |___________|________________________________________|________________|
    |           |  Trap   |Reservoir|  Source  | Timing/ |Probability of  |
    |           |Integrity| Quality |Evaluation|Migration|Geologic Success|
    |           |         |         |          |         |   (Percent)    |
    |___________|_________|_________|__________|_________|________________|
    |Miocene    |     60  |     30  |      90  |     90  |          15    |
    |___________|_________|_________|__________|_________|________________|
    |Talme Yafe |     60  |     50  |      90  |     90  |          24    |
    |___________|_________|_________|__________|_________|________________|
    |Gevar Am   |     60  |     50  |      90  |     90  |          24    |
    |___________|_________|_________|__________|_________|________________|

Each reservoir was evaluated to determine ranges of in – place and
recoverable petroleum and was risked as an independent entity without
dependency between potential perspective reservoir drilling outcomes.

Yitzhak License – Prospective Resources

The Yitzhak License is located approximately 38 kilometers north – northwest of Tel
Aviv, in the waters offshore Israel. The block covers an area of
approximately 128 square kilometers (31,630 acres) and is in water
depths that range from 75 meters on the east side of the block to just
over 225 meters on the west side of the block.  Two wells, the Delta 1,
and Delta 1A have been drilled on the block.

The estimated gross (100%) prospective resources from the Jurassic
Formation, as of March 1, 2012 are:

Summary of Gross (100 percent) Prospective Resource((1)) Estimates of Prospective Reservoirs

     _____________________________________________________________________
    |           |             |Unrisked Gross (100%) Prospective Resources|
    |___________|_____________|___________________________________________|
    |Prospective|   Category  |  Oil  |Condensate| Gas  |  Oil Equivalent |
    |Reservoir  |             |(MMbbl)| (MMbbl)  |(Bcf) |    (Mmboe(3))   |
    |___________|_____________|_______|__________|______|_________________|
    |Talme Yafe |Low Estimate |   0.0 |     2.4  |112.1 |         21.1    |
    |___________|_____________|_______|__________|______|_________________|
    |           |Best Estimate|   0.0 |    13.2  |486.7 |         94.3    |
    |___________|_____________|_______|__________|______|_________________|
    |           |High Estimate|   0.0 |    58.2  |1807.6|         359.5   |
    |___________|_____________|_______|__________|______|_________________|
    |           |             |       |          |      |                 |
    |___________|_____________|_______|__________|______|_________________|
    |Gevar Am   |Low Estimate |   0.0 |     1.8  | 78.8 |         14.9    |
    |___________|_____________|_______|__________|______|_________________|
    |           |Best Estimate|   0.0 |    12.4  |457.4 |         88.6    |
    |___________|_____________|_______|__________|______|_________________|
    |           |High Estimate|   0.0 |    68.1  |2206.4|         435.8   |
    |___________|_____________|_______|__________|______|_________________|
    |           |             |       |          |      |                 |
    |___________|_____________|_______|__________|______|_________________|
    |Jurassic(2)|Low Estimate |  28.3 |     0.0  | 28.3 |           33    |
    |___________|_____________|_______|__________|______|_________________|
    |           |Best Estimate|  79.1 |     0.0  | 79.1 |         92.3    |
    |___________|_____________|_______|__________|______|_________________|
    |           |High Estimate| 167.6 |     0.0  |167.6 |         195.6   |
    |___________|_____________|_______|__________|______|_________________|

    (1)      Prospective resources are those quantities of petroleum
             estimated, as of a given date, to be potentially recoverable
             from undiscovered accumulations by application of future
             development projects. The prospective resources included in
             this report indicate exploration opportunities and development
             potential in the event a petroleum discovery is made and
             should not be construed as reserves or contingent resources.
             There is no certainty that any portion of the prospective
             resources will be discovered. If discovered, there is no
             certainty that it will be commercially viable to produce any
             portion of the prospective resources.

             The prospective resources shown in the table above have been
             estimated using probabilistic methods. The probability that
             the quantities of resources actually recovered will equal or
             exceed the estimated amounts for the low estimate is 90%, for
             the best estimate is 50% and the high estimate is 10%. Based
             on analogous field developments, assuming a discovery is made,
             the best estimate contingent resources on the Yitzhak block
             have a reasonable chance of being commercial.

    (2)      Based on well test information, a gas-oil ratio of 1,000
             standard cubic feet per barrel was estimated for the Jurassic
             prospective reservoir low, best and high estimates

    (3)      BOEs may be misleading, particularly if used in isolation. A
             BOE conversion ratio of 6 Mcf: 1bbl is based on an energy
             equivalency conversion method primarily applicable at the
             burner tip and does not represent a value equivalency at the
             wellhead.

The table below illustrates the geological risk elements and overall
probability of geological success for each of the three prospective
reservoirs.

Risk Elements

     _____________________________________________________________________
    |Prospective|        Geologic Risk Elements (Percent)|                |
    | Reservoir |                                        |                |
    |___________|________________________________________|________________|
    |           |  Trap   |Reservoir|  Source  | Timing/ |Probability of  |
    |           |Integrity| Quality |Evaluation|Migration|Geologic Success|
    |           |         |         |          |         |   (Percent)    |
    |___________|_________|_________|__________|_________|________________|
    |Talme Yafe |     60  |     50  |      90  |     90  |          24    |
    |___________|_________|_________|__________|_________|________________|
    |Gevar Am   |     70  |     50  |      90  |     90  |          25    |
    |___________|_________|_________|__________|_________|________________|
    |Jurassic   |     70  |     70  |      90  |     90  |          40    |
    |___________|_________|_________|__________|_________|________________|

The estimates in this report have been prepared in accordance with the
definitions and guidelines set forth in Canadian National Instrument
51-101 Standards of Disclosure for Oil and Gas Activities and Section 5
of Volume 1, Second Edition, of the Canadian Oil and Gas Evaluation
Handbook (COGEH), prepared jointly by the Society of Petroleum
Evaluation Engineers (Calgary Chapter) and the Canadian Institute of
Mining, Metallurgy & Petroleum (Petroleum Society) (the latter of which
is now the Petroleum Society of Canada).

Gabriella and Yitzhak Working Interests

In the Gabriella License, Adira holds a Working Interest of 15% plus a
15% back-in option from Modi’in Energy LP (“Modi’in“), upon discovery at cost. In addition, Adira has various combined
Overriding Royalty Interests (“ORRI“) of between 4.5% and 10.5%, and management fees in the license from
Modi’in and its general partner. After combining the ORRI and
management fees with Adira’s Working Interest and back-in rights, Adira
has an ultimate economic interest of over 40% in the Gabriella License.

In the Yitzhak License, Adira holds a Working Interest of 60%. In
addition, Adira has a 4.5% ORRI from two of its partners’ who
collectively hold a 25% working interest in the license.

About Adira Energy Ltd.

Adira Energy Ltd. is an oil and gas company which focuses offshore
Israel. The Company has three petroleum exploration licenses; the
Gabriella, Yitzhak and Samuel Licenses.  These licenses are located
respectively 10 km offshore between Netanya and Ashdod, 17 km offshore
between Hadera and Netanya and adjacent to the coast between Ashkelon
and Bat-Yam.

Forward-Looking Statement Disclaimer

This press release includes certain statements that may be deemed
“forward-looking statements”. All statements in this press release,
other than statements of historical facts, including those that
announce proposed financings that the Company expects to complete, are
forward-looking statements. Although the Company believes the
expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future
performance, and actual results or developments may differ materially
from those in the forward-looking statements. Factors that could cause
actual results to differ materially from those in forward-looking
statements include the failure of investors who are believed to have
committed to the financings to complete them as a result of general
market conditions, adverse developments unique to such investors, or
otherwise. Accordingly, the actual amounts raised may differ materially
from those projected in the forward-looking statements. In addition,
please note that statements relating to “resources” or “reserves” are
deemed to be forward- looking statements, as they involve the implied
assessment, based on certain estimated and assumptions that the
resources or reserves described can be profitably produced in the
future. Such statements represent the Company’s internal projections,
estimated or beliefs, concerning, among other things an outlook on the
estimated amounts and timing of capital expenditures, anticipated
future debt levels and incentive fees or revenues or other expectation,
beliefs, plans, objectives, assumption, intentions or statement about
future events or performance.  These statements are only predictions.
Actual events or results may differ materially. Although the Company
believes that the expectations reflected in the statements are
reasonable, it cannot guarantee future results since such results are
inherently subject to significant business, economic, corporate,
political and social uncertainties and contingencies. Many factors
cause the Company’s actual results to differ materially from those
expressed or implied in any forward looking statements made by, or on
behalf of, the Company and the foregoing list of important factors is
not exhaustive. The statements contained herein are made as of the date
hereof and the Company disclaims any intent or obligation to update
publicly any forward looking statements, whether as a result of new
information, future events or results or otherwise. Company
shareholders and potential investors should carefully consider the
information contained in the Company’s filing with Canadian securities
administrators at www.sedar.com before making investment decisions with regard to the Company

The statements made in this Press Release may contain forward-looking
statements that may involve a number of risk
s and uncertainties. Actual events or results could differ materially
from the Company’s expectations and projections.

Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the p
olicies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release
.

 

 

 

 

 

SOURCE Adira Energy Ltd.


Source: PR Newswire