VANCOUVER, Sept. 9 /CNW/ - AMG OIL LTD. (OTCBB: AMGOF; FRANKFURT: AORLB8)
(the "Company") is pleased to announce that the Israeli Petroleum
Commissioner's office has notified the Company that, during the most recent
sitting of the Israeli Petroleum Board, the Company, through its wholly-owned
subsidiary Adira Energy Corp., was awarded a petroleum license in offshore
Israel (the "Gabriella License").
About the Gabriella License
The Gabriella License area is centered approximately 10 km off the
Israeli coast and stretches from Netanya in the North to Ashdod in the South
(about 40 km). The Gabriella License covers a total license area of 390,000
Dunam (approximately - 390 square kilometers or 97,000 acres).
The license area is in shallow water with a depth between 80 and 120
meters, which the Company believes will make drilling more cost efficient. The
Gabriella License has been granted for an initial period of three years
commencing July 15, 2009.
Stephen Pierce, AMG's Senior Vice President of Geology, said: "During the
early 1990's an oil well located in the area covered by the Gabriella License
called "Yam Yafo -1" was drilled and tested. We understand that production
tests of the "Yam Yafo -1" well yielded approximately 500-800 barrels per day,
but that technical problems and lack of funds prevented commercial production.
We also understand that there is a stratigraphic high with seemingly good
closure. With some nine wells within 34 km radius of the central part of the
block, we believe that we have a good prospect that is an attractive target
for hydrocarbon exploration."
The Company's successful application for the Gabriella License expands
AMG's portfolio of petroleum licenses from a single onshore project to include
an interesting prospective offshore area within a region that is known to host
significant evidence of hydrocarbons.
AMG's Chief Executive Officer, Ilan Diamond stated: "We are very pleased
to have been successfully granted the Gabriella License. Since the Nobel/Delek
Tamar gas discoveries - 60 km west of Hadera (Dalit) and 90 km west of Haifa
(Tamar) the region where our license is located has become well known to
people in the oil and gas community as a very prospective area. The Company is
fortunate to have a significant block in the region. We continue to plan for
the start of our exploration and drilling program. The drilling operations on
our "Eitan" license in the Hula valley region of Israel are likely to start
ahead of schedule and we now anticipate that drilling will commence during
October 2009. Having recently completed the business combination between Adira
Energy Corp. and the Company, as well as successfully completing a previously
announced private placement, we are well positioned to commence our drilling
operations on the Eitan license in the Hula Valley, Northern Israel, and begin
evaluation work on the Gabriella License area."
About AMG Oil Ltd.
Through its wholly-owned subsidiary Adira Energy Corp., an Ontario
corporation, the Company explores for oil and gas in Israel in areas located
on-shore in the Hula Valley and in Israel 10km offshore between Netanya and
Ashdod. The Company currently holds two petroleum exploration licenses, the
Eitan License and the Gabriella License, covering an aggregate total of
approximately 129,000 acres.
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
For further information:
For further information: Alan Friedman, EVP, Corp. Development, (416)