Adira Energy Ltd. is pleased to provide an operational and project update and appointment of new auditors.
On its onshore "Eitan" gas license in the Hula Valley, Northern Israel, the Company's drilling team has reworked three existing wells, all of which have a gas presence. Pumps have been ordered for installation. One coal-bed methane (CBM) well tested 200 mcfd with a static pressure of 600 PSI. A shallow test well was drilled to delineate shallow sands and the rig has now been moved onto a CBM well that is being drilled and wireline cored to testing gas contents in the coals between 400 and 800 meters. Currently, specialists experienced in testing developing unconventional gas fields are on site and a field laboratory has been mobilized for intensive testing. This well is currently cased through the upper sands and will be drilled to core point where it will be wireline cored through the complete resource intercept.
Offshore, on the Company's "Gabriella" and "Yitzchak" licenses, Western Geco has completed a state of the art dual azimuth 511 kilometers and 129 kilometer 3D survey, respectively. (See press release December 14, 2010). This detailed survey will help define the anticipated oil targets on both licenses. The Company has signed a definitive contract with CGG Veritas, a UK based global provider of geophysical services and equipment, for processing the data, the results for which are anticipated to be received in the third quarter of this year. Adira Energy is also pleased to announce the signing of a definitive joint operating agreement (JOA) with its Gabriella license participating partners, Modiin Energy Limited Partnership and Brownstone Energy Inc. (Brownstone) and the signing of a second JOA agreement with its Yitzhak license partner, Brownstone. Adira is the operator on both licenses. Adira Energy is also pleased to announce that it has signed a definitive JOA with its shallow water "Samuel" license participating partners: Geo Global Resources Inc. (GGR), Brownstone and Pinetree Capital Ltd. Adira Energy and GGR are joint operators of the Samuel license. The Company is also pleased to announce that it has signed a contract with ARIS Nefterazvedka LLC., a Russian geophysical contractor specializing in OBC or Ocean Bottom Deployed Cables. This system provides very high resolution recording of targets with little impact with surface traffic. The OBC system provides an excellent quality survey for shallow transient zones. The contractor has been authorized to prepare for mobilization and the issuance of permits is underway. The program is anticipated to begin the third week of April and work continuously for approximately 40 days.
Yael Reznik Cramer, CEO of the Company commented: "We have a well-defined strategy, an effective management team and a very competent team of contractors that have overseen the exploration activities of the last few months. We continue to meet the needs of all our partners, including the work programs that we are committed to execute, and we are ensuring high quality results in all the work carried out. Adira is constantly reviewing new opportunities in the region and we believe that we are well placed in the market to take advantage of them, when they arise."
Colin Kinley, President and Chief Operating Officer of the company confirmed: "The last few quarters have been extremely active for our technical team as we work through our operational program to advance the exploration activities on our licenses. I am very pleased with the results to date and I look forward to working with our technical team and our 3rd party experts on the processing of the 3D seismic data we acquired on our Gabriella and Yitzhak licenses and on the execution the OBC program on Samuel."