TORONTO, Jan. 31, 2013 /CNW/ - ADIRA ENERGY LTD. (TSXV: ADL) (OTCBB: ADENF) (FRANKFURT: AORLB8). As previously announced on December 24, 2012, Adira Energy Ltd. ("Adira" or the "Company") entered into an Agreement with Modi'in Energy L.P. ("Modi'in") and Brownstone Energy Inc. setting out, among other terms and
conditions, the collateral required to place a Letter of Credit in
favor of the rig contractor. The Company's subsidiary, Adira Energy
Israel Ltd. has not placed its share of the cash collateral, due to
material breaches of the Agreement by Modi'in.
Jeffrey E. Walter, Chief Executive Officer of Adira Energy commented: "Adira is working with Modi'in to resolve these issues so that the
License partners can move forward with the drilling of the Gabriella
well, which is expected to begin in March 2013."
About Gabriella
The Gabriella License is located approximately 10 kilometers northwest
of Tel Aviv, in the waters offshore Israel. The block covers an area of
approximately 392 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. Adira holds a 15%
Working Interest in the Gabriella License and is the designated
Operator. On March 13, 2012, the Company announced it received an
independent resource report prepared by Netherland, Sewell &
Associates, Inc. which included a best estimate of 110.1 MMbbl of
contingent oil on the Gabriella License on a gross unrisked basis. Full
resource report is available on SEDAR (www.sedar.com)
About Adira Energy Ltd.
Adira Energy Ltd. is an oil and gas company which is focused in the
Eastern Mediterranean. The Company has three petroleum exploration
licenses offshore Israel; 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. The Company also has an option
on the Yam Hadera License, offshore Israel, which is located 30
kilometers offshore Israel, between Hadera and Haifa and North West of
Adira's Yitzhak license.
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 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. Forward-looking statements are based on the
Company's internal projections, estimated or beliefs, concerning, among
other things an outlook on the estimated amounts and timing of
exploration work and capital expenditures or other expectation,
beliefs, plans, objectives, assumption, intentions or statements about
future events or performance, which are considered by management to be
reasonable at the time made. 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 stated factors are 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, except as required by applicable law. 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.
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.
