Adira Energy Ltd., Toronto, will farm out partial interests in its Mediterranean licenses offshore Israel to Tohar Hashemesh Ltd.
Adira will farm out 5% of its working interest in its Gabriella license, 10% of its Yitzhak license, and 10% of its Samuel license. Also, 2.5% of Adira’s working interest in Gabriella will be carried. Gabriella is to be drilled in the first half of 2013, followed by Samuel and Yitzhak later next year.
Meanwhile, Israel’s Ministry of Energy and Water extended the date for executing a drilling contract on the Samuel license.
Tohar Hashemesh will reimburse $1.6 million or 50% of Adira’s costs incurred on the licenses and will pay the other 50% upon registration of its interest with the ministry. Additional terms and conditions apply.
Following approval of the agreements, excluding options granted to Tohar Hashemesh, Adira will hold 10% of Gabriella in addition to the 15% back in option, 50% of Yitzhak, and 31.25% of Samuel.