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-km2
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-km2 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
(MMbbl) |
Gas(2)
(Bcf) |
Oil Equivalent
(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
Reservoir |
Category |
Oil Resources
(MMbbl) |
Condensate
(MMbbl) |
Gas
(Bcf) |
Oil 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 Estimate |
0.0 |
25.7 |
773.5 |
154.6 |
| |
|
|
|
|
|
| Talme Yafe |
Low Estimate |
0.0 |
0.8 |
39.6 |
7.4 |
| |
Best Estimate |
0.0 |
4.7 |
174.7 |
33.8 |
| |
High Estimate |
0.0 |
18.6 |
562.6 |
112.3 |
| |
|
|
|
|
|
| Gevar Am |
Low Estimate |
0.0 |
1.1 |
52.2 |
9.8 |
| |
Best Estimate |
0.0 |
5.7 |
209.3 |
40.6 |
| |
High Estimate |
0.0 |
21.7 |
670.7 |
133.5 |
| |
|
|
(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
Reservoir |
Geologic Risk Elements
(Percent) |
|
| |
Trap
Integrity |
Reservoir
Quality |
Source
Evaluation |
Timing/
Migration |
Probability of
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
Reservoir |
Category |
Oil
(MMbbl) |
Condensate
(MMbbl) |
Gas
(Bcf) |
Oil Equivalent
(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
Reservoir |
Geologic Risk Elements
(Percent) |
|
| |
Trap
Integrity |
Reservoir
Quality |
Source
Evaluation |
Timing/
Migration |
Probability of
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
risks 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
policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.
SOURCE Adira Energy Ltd.