TORONTO, May 10 /CNW/ - ADIRA ENERGY LTD. (TSXV: ADL) (OTCBB: ADENF) (FRANKFURT: AORLB8). Adira Energy Ltd. ("Adira Energy" or the "Company") is pleased to announce that Gustavson Associates, LLC. ("Gustavson") has been contracted to provide resource interpretation and evaluation
of Adira's offshore licenses.
Adira Energy is pleased to announce that it has formally contracted
Gustavson of Boulder, Colorado, to provide professional, geophysical,
petrophysical, geological and engineering services for resource
interpretation and evaluation on each of its three offshore Israel
licenses, "Gabriella", "Yitzhak" and "Samuel". Gustavson is an internationally recognized team of resource industry
specialists acknowledged for their technical capacity to provide expert
opinions on resource evaluation geotechnics and economics. Adira
Energy, as Operator on the Gabriella and Yitzhak licenses and as
Co-Operator on the Samuel license, has contracted Gustavson, to
independently evaluate all three licenses. The Company has recently
completed 3D geophysical programs on Gabriella and Yitzhak, and the
first phase of processing (often termed "Fast Track") is now complete,
and detailed processing is underway by CGG Veritas. The Samuel 3D
contractor, ARIS Nefterazvedska LLC of Moscow is currently mobilizing,
to complete an Ocean Bottom Cable deployed survey. Other regional data
is to be obtained in order to provide initial characterization.
Colin Kinley, Adira Energy President and COO stated: "Contracting
Gustavson to complete three independent reports on our licenses is a
significant step forward on the Company time line. Adira's highly
qualified in-house team, together with our respective partners, are
continuing to evaluate the targets. Gustavson support will provide
adequate assurances of the quality of our resource and the selection of
our targets. We are focused on independent oil targets on each license
and are encouraged by the quality of the data obtained from the
Yael Reznik Cramer, interim CEO of the Company confirmed: "We believe
that the potential exists for significant oil in Israel. As in the gas
discoveries, early indications defining the fundamentals exist.
Gustavson and our team are focused on defining and proving out oil and
gas targets that, in the event successful, will be meaningful both to
Adira and Israel."
Kinley adds: "We anticipate completion of resource evaluation on
Yitzhak, Gabriella and Samuel by the end of the third quarter. Assuming
Fast Track quality is sufficient to support further quantification, the
Company will engage an independent major consultancy firm to establish
economic risking of the targets, and an anticipated valuation of each
of the blocks. Adira is focused on establishing credible targets and
valuations thereof to define their drilling schedules."
Stock Option Grant
The Company also announces the granting of incentive stock options to
purchase an aggregate of 505,000 common shares of Adira Energy to an
officer and a number of employee recipients. The stock option grants
are all subject to regulatory approval. Terms of the options include an
exercise price of $0.60 per common share, and a vesting schedule
allowing for the vesting of 12.5% of the options granted every six
months with the initial amount vesting on the date that is six months
from the date hereof, resulting in the options being fully vested on
November 2, 2015. The options expire on May 2, 2016.
About Gustavson Associates, LLC.
Gustavson Associates is a global consulting firm consisting of
geologists, geophysicists, engineers, land and contract managers as
well as economists and financial experts who solve problems on all
aspects of natural resource evaluations. This work ranges from the
first steps of prospecting to design and assessment of production
facilities. Multi-lingual capabilities include Spanish, French, German,
Russian, Chinese, Farsi, and Arabic.
Gustavson Associates has a 25-year track record of quality consulting to
industry and governments worldwide. Their experienced staffs utilize
the latest technology to quickly and economically analyze large volumes
of data. Its equipment support includes: Seismic Workstations,
Geographix mapping capability, PC's with a full suite of Prospect
Evaluation, Petrophysical, Geological, Reserve Estimating, Basin
Modeling and Economic Forecasting Software.
About Adira Energy Ltd.
Adira Energy Ltd. explores for oil and gas in and offshore Israel. It
has four petroleum exploration licenses; the Eitan, Gabriella, Yitzhak
and Samuel Licenses. These licenses are located respectively on-shore
in the Hula Valley of Northern Israel, 10 km offshore between Netanya
and Ashdod, 17 km offshore between Hadera and Netanya and adjacent to
the coast between Ashkelon and Bat-Yam.
The Company has filed an independent technical report related to the
Eitan license on www.sedar.com. The report, prepared by Petrotech Engineering Ltd. is entitled
"Evaluation of the Interest of Adira Energy Corp. in License No.356
EITAN in the Hula Valley, Israel", dated June 1, 2009 and is
supplemented by a letter dated October 8, 2009.
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. For more
information on the Company, investors should review the Company's
filings, available at www.sedar.com and www.sec.gov. This announcement does not constitute an offering of securities nor a
solicitation to purchase securities. An offer of securities will only
be made by subscription agreement and subject to applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the securities in the United States. The
securities have not been and will not be registered under the United
States Securities Act of 1933, as amended (the "U.S. Securities Act")
or any state securities laws and may not be offered or sold within the
United States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available
SOURCE Adira Energy Ltd.
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