In c8101 disseminated today at 09:37e, please note that the
press release erroneously reported a best estimate gross resource
number of 65.8 billion cubic feet of gas as 658 billion cubic feet
of gas. The oil best estimate gross resource number remains
unchanged at 65.8 million barrels. Corrected copy follows:
Adira Energy receives resource report on the Samuel License
offshore Israel
TORONTO,
Oct. 18, 2012 /CNW/ - ADIRA ENERGY
LTD. (TSXV: ADL) (OTCBB: ADENF) (FRANKFURT: AORLB8). Adira Energy Ltd.
("Adira" or the "Company") today announced it has
received an independent resource report (the "Report")
including a best estimate in aggregate of 65.8 million barrels
("MMbbl") of oil and 65.8 billion cubic feet ("BCF")
of gas in four structures on the Company's Samuel License (the
"License") located offshore Israel. The Report was prepared by Netherland,
Sewell & Associates, Inc. ("NSAI") of Houston, Texas and is available on SEDAR
(www.sedar.com).
NSAI conducted an assessment of the Gross (100%)
Unrisked Prospective Resources located in the #388 / Samuel block
as of October 17, 2012. Approximately
42 km2 of 3D seismic data was acquired in 2011 for the
License using state of the art Ocean Bottom Cable (OBC) and
processing technology.
The following is a summary of the findings of the Report as of
October 17, 2012:
Summary of Best Estimate
Prospective(1) Resources
Hydrocarbon |
Best Estimate Gross |
Light/Medium Oil |
65.8 MMbbl |
Gas |
65.8 BCF |
(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 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 Samuel block has a reasonable chance
of being commercial. |
Jeffrey E.
Walter, Chief Executive Officer commented: "With
a Best Estimate gross of 65.8 MMbbl the report from
Netherland Sewell clearly defines
that Adira has additional oil exploration opportunities in the
emerging Syrian Arc oil trend of the Levant Basin. The initial well
will target the Cretaceous section which is estimated to contain
almost 38 million barrels of prospective oil equivalent on a gross
unrisked basis. Adira and its partners will continue to review the
deeper Jurassic section which NSAI estimates has the potential of
38 million barrels of prospective unrisked oil equivalent.
Samuel is the third license in the Adira portfolio and continues to
expand Adira's access to the significant oil opportunities offshore
Israel"
Prospective Resources
The estimated gross (100%) prospective resources as of
October 17, 2012 are:
Summary of Gross (100 percent) Prospective
Resource Estimates of Prospective Reservoirs
|
|
Unrisked Gross
(100%) Prospective Resources |
Prospective
Reservoir |
Category |
Light/Medium
Oil
(MMbbl) |
Gas(1)
(Bcf) |
Oil Equivalent
(Mmboe(2)) |
Cretaceous Reef |
|
|
|
|
Talme Yafe |
Low Estimate |
10,332 |
10,332 |
12,054 |
|
Best Estimate |
32,558 |
32,558 |
37,984 |
|
High Estimate |
93,359 |
93,359 |
108,919 |
Jurassic Reef |
|
|
|
|
Upper Jurassic |
Low Estimate |
11,700 |
11,700 |
13,650 |
|
Best Estimate |
31,132 |
31,132 |
36,321 |
|
High Estimate |
76,601 |
76,601 |
89,368 |
Jurassic Structural |
|
|
|
|
Upper Jurassic |
Low Estimate |
205 |
205 |
239 |
|
Best Estimate |
628 |
628 |
733 |
|
High Estimate |
1,749 |
1,749 |
2,041 |
|
|
|
|
|
Barnea Formation |
Low Estimate |
498 |
498 |
581 |
|
Best Estimate |
1,499 |
1,499 |
1,749 |
|
High Estimate |
4,189 |
4,189 |
4,887 |
(1) |
Based on well test information, a gas-oil ratio of 1000
standard cubic feet per barrel was estimation for each prospect's
low, best and high estimated. |
(2) |
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) |
Cretaceous Reef |
60 |
70 |
95 |
50 |
20 |
Jurassic Reef |
50 |
60 |
95 |
60 |
17 |
Jurassic Structural |
70 |
70 |
95 |
70 |
33 |
The estimates in this report have been prepared
in accordance with the definitions and guidelines set forth in the
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).
Samuel License
The Samuel License covers a total area of
approximately 360 square kilometers (or 89,205 acres) and is in
relatively shallow water with depths between 30 and 100 meters.
Adira's net interest in the Samuel License is
41.25%, of which 23.25% is held through its 100% owned Canadian
subsidiary Adira Oil Technologies Ltd. and 18% of which is held
through it's 60% held subsidiary Adira GeoGlobal Ltd. In addition,
the Company is entitled to receive one-half of an aggregate
operating fee equal to 7.5% of the cumulative direct costs incurred
in connection with operating the Samuel License and one-half of 3%
over-riding royalty to be paid by partners other than the Company
and GeoGlobal Resources (India)
Inc.
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, 9 km
offshore between Hadera and Netanya and adjacent to the coast
between Ashkelon and
Palmachim.
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.