A TSX-V Listed Oil and Gas Company
Exclusively Focused on the East Mediterranean
1
Corporate Presentation
Forward Looking Statements
Certain statements contained in this presentation, and in certain documents incorporated by reference in this presentation, constitute "forward-looking statements". All statements other than statements of historical fact contained in this presentation, including, without limitation, those regarding the Corporation's future financial position and results of operations, strategy, plans, objectives, goals and targets, future developments in the markets where the Corporation participates or is seeking to participate, and any statements preceded by, followed by or that include the words "believe", "expect", "aim", "intend", "plan", "continue", "will", "may", "would", "anticipate", "estimate", "forecast", "predict", "project", "seek", "should" or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Corporation's expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements. Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to, those discussed under "Risk Factors" in the short form prospectus to which this presentation relates. Management provides forward-looking statements because it believes they provide useful information to readers when considering their investment objectives and cautions readers that the information may not be appropriate for other purposes. Consequently, all of the forward-looking statements made in this presentation are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Corporation. These forward-looking statements are made as of the date of this presentation and the Corporation assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law.
The forward-looking statements in this presentation are based on numerous assumptions regarding the Corporation's present and future business strategies and the environment in which the Corporation will operate in the future, including assumptions regarding expected yields, future prices, business and operating strategies, and the Corporation's ability to operate its production facilities on a profitable basis.
Some of the risks which could affect future results and could cause results to differ materially from those expressed in the forward-looking statements contained herein, including risks associated with the Corporation, such as lack of revenue, risks associated with the Corporation's business, such as the
The Opportunity
East Mediterranean
•
Host of two of the largest worldwide gas discoveries
of the decade
•
Oil - the next resource headline story for Israel
•
USGS estimates Levant Basin 122TCF gas,
1.7BBbL oil
•
Noble Energy’s recent estimates on the Mesozoic
oil potential at Leviathan (gross unrisked resource)
210 MMBOE – 1.5BBOE, Drill Rig mobilized
•
Syrian Arc Commercial Production in Syria and
Egypt, associated structures form the oil trend in
Israel
•
Regional demand for oil - Israel currently imports
230,000 BOPD, 100% of its demand
•
International E&P Interest: Gazprom and
Woodside bidding on Leviathan
Adira Energy
•
Exclusive exposure to the East Med offshore oil and
gas discovery region
•
Looking for oil where it has already been found
•
NI 51- 101 Resource Reports complete on Gabriella
Yitzhak, Samuel licenses
•
Licenses near infrastructure, near shore, and
technically routine
•
Board, management and technical teams with
extensive knowledge of region and experience in
public markets
Dennis Bennie –Chairman
Co-Founder Adira Energy. Founder and CEO of XDL Capital; Co-founder, Former Chairman and CEO of Delrina Corporation; former Chairperson of
Canada Israel Political Affairs Committee (CJPAC).
Alan Friedman - Executive Vice President - Corporate Development, Director
Co-Founder Adira Energy. Senior roles in resource public market sector and emerging markets covering acquisitions, disposals, financings and
investor communications. Over the decade, has managed or facilitated numerous successful transactions (IPO & RTO) on TSX and TSX-V and
financings in excess of $100m. Various roles in TSX companies, Afriore Ltd., Talon Metals Corp. and Auryx Gold Corp (recently sold to B2 Gold in
excess of $150mm). Co-Founder and Director of Eco Atlantic (TSX:EOG)
Colin Kinley – Director
31 years international expertise in energy project management and new energy companies development. Served as a Senior Executive to several
E & P companies & oilfield service companies and is specialized in frontier resource development. Director and CEO of Manx Energy Inc. - an
Company developing Heavy Oil in Canada, Director of Excelsior Minerals and CEO of Kinley Exploration LLC, leading a team providing
professional, technical and oversight to international resource companies within the upstream sector.
Alan Rootenberg – Director
Chartered accountant with experience in the mineral exploration and technology industries. Served as a senior executive for a number of publicly
traded companies, including as President and Chief Executive Officer of a TSXV listed technology company. Received a Bachelor of Commerce
degree from the University of the Witwatersrand in Johannesburg, South Africa and the Chartered Accountant designation in both South Africa and
in Ontario, Canada.
Gadi Levin - Chief Financial Officer
Chartered Accountant with experience in the public and private equity markets, spanning multiple jurisdictions including North America, Europe and
Israel. B Comm degree in Accounting and Information Systems and MBA from Bar Ilan University in Israel. Has a Chartered Accountant
Designation.
Moshe Politi - Chief Geologist
42 years of experience, specializing in the integration of multi-disciplinary aspects of geology and geophysics into viable prospects in various
environments: onshore, offshore, shallow and deep prospects, structurally complex (overthrust) and stratigraphic plays focused in the East
Mediterranean. Bachelor and Master Degrees in Geology from The Hebrew University in Jerusalem and is currently engaged in his PhD studies in
Jerusalem.
Alon Polishuk - VP of Contracts Administration and Regulations
Over 5 years in Government Services of Israel. Extensive experience in project management, business development and expertise in legal analysis
and critical examination. Specializes in Law and was admitted to the Israel Bar in 2001. Holds a BA, Business (Finance) from the Arison School of
TSX.V: ADL
East Med Licenses and Discoveries
Legend
Adira Blocks Discovery Blocks Gas Fields Previous wells Tel Aviv Ashdod Ashkelon Herzliya ISRAEL EGYPT LEBANON CYPRUSLevant Basin Discoveries Since 2009
Discovery
Size
Tamar
10 TCF
Dalit
0.5 TCF
Leviathan
16.7 TCF
Possible Deep Oil
Cyprus
5+ TCF
Tanin
1.2 TCF
Dolphin
0.6 TCF
Shimshon
0.5 TCF
International E&P Interest – East Med
7
TOTAL GAZPROM TOTAL ENI KOGAS ENI KOGAS Legend 2nd Licensing Areas Authorized Areas CYPRUS ISRAEL LEBANONGazprom
Total
French multinational oil and gas Company. One of
world’s 6 “Super Majors”
KOGAS
Korean public natural gas company. World’s largest
LNG import company
ENI
Italian multinational oil and gas company, in 79
countries, currently Italy's largest industrial company
Woodside & Gazprom Bidding on Leviathan, Offshore Israel
Woodside Energy (ASX: WPL): Largest Australian petroleum exploration and production company (Approx
$30B market cap.) Produces around 800,000 barrels of oil equivalent each day.
Gazprom: Global energy company, one of Russia’s top 5 largest oil producers. Largest Nat Gas deposit in the
world
Cyprus Second Bid Round Awards
TSX.V: ADL
The Syrian Arc
East Mediterranean Production
SSW NNE
Top
Zohar
(* Not Deep Enough) Yam-2 ~800 BOPD Yam Yafo-1 ~800 BOPD P Gabriella-1 Delta-1 NDE* P Yitzhak-1
Shemen
Gabriella
Yitzhak
P Gabriella - 1 Delta -1 P Yitzhak -1
Yam Yafo-1
Gabriella & Yitzhak Structures – Contiguous to Shemen
• Shemen’s Yam-3 well reached target
depth in August 2013
• Caspian Drilling (the operator) reported
indications of significant gas and high
quality oil
• Target Upper Jurassic formations
reported with net thickness of 68
meters.
• Production testing underway, results
30-60 days
East Mediterranean Syrian Arc Ridge & the Shemen
findings
East Mediterranean Syrian Arc Ridge
Southern
Northern
Dip lines across Syrian Arc deformation zone
•
Underexplored potential
•
Additional anticlinal ridges
•
Repeatable success possible
•
Similarities between Shemen/Yitzhak and Gabriella – oil reported when
drilled in 1989 (Yam 2) and and in 1994 (Yam Yafo 1) and now in Yam 3
•
Adira’s Yitzhak and Gabriella blocks are located on a similar structure
and are structurally higher than Shemen license. Shemen discovery in
68 meters net pay increase chances that Adira net pay will be larger
Israel’s Oil Trend
Project
Best Estimate Gross
Yam Hadera
Modiin
208 mmbo
Yitzhak
Adira
79 mmbo
Gabriella
Adira
110 mmbo
(contingent)
Shemen
Shemen
270 mmbo
Samuel
Adira*
66 mmbo
(contingent)
TOTAL
658 mmbo
TSX.V: ADL
Target: Oil
Mid Jurassic , Zohar- Fractured Carbonates
Target: Gas
Cretaceous Talme Yafe carbonates and sands
Target: Condensate Cretaceous Talme Yafe carbonates and sands
Exploration:
129 Km
23D completed by Adira (WesternGeco), processing
completed by CGG Veritas
Prior Drilling:
Delta-1 Well drilled (off structure) in 1970’s to 4,423m,TD in
Upper Jurassic. Oil encountered in Mid Jurassic (Yam
Yaffo1 and Yam 2- Gabriella/Shemen) Zohar formation tested
for oil in Yam Yafo-1 (4,890m – 4,995m) and Yam-2 Well
(5,315m) interesting & significant structural high
Drilling:
Shallow water 93 to167 meters. Floater
Adira Interest:
70% Working Interest, 3% -4.5% ORRI from AGR & Ellomay
Partners:
Brownstone Energy 15%, AGR 5%, Ellomay 10%
Status:
License expires December 2013. Extension application Submitted.
Awaiting extension from the Ministry.
P50 (Best Estimate) Prospective Oil (Jurassic):
79.1 MMBO
Yitzhak Structure- Depth
Yitzhak License
(31,689 Acres)
Co-Operator: Adira/AGR
3D seismic
survey
Processing &
interpretation
Resource
Report
Long lead items
3D seismic
survey
COMPLETE
Processing &
interpretation
COMPLETE
Resource Report
and Procurement
of long lead items
COMPLETE
Rig contract
2014(*)
Spud well
2014(*)
Target: Oil
Jurassic fractured carbonates
Target: Gas
Cretaceous limestone and sands
Miocene stratigraphic
Target: Condensate Cretaceous limestone and sands
Miocene stratigraphic
Exploration: 587 Km
2Dual Azimuth 3D completed Jan 2011 by Adira
(WesternGeco), Processing completed by CGG Veritas
Prior Drilling:
Yam Yafo-1 Well: Drilled in 90’s to 5,823m tested 800 bopd (44
0API)
Drilling:
Shallow water 127 to 220 meters. Floater
Economic Interest: 15% WI
Partners:
Brownstone Energy 15%, Modi’in Energy 70%
Status:
License expired in September 2013. Extension Application
Submitted. Awaiting extension from the Ministry. May be forced to
relinquish interest to partners
13
Gabriella Structure- Depth
Gabriella License
(96,371 Acres)
Operator: Adira Energy
2C (Best Estimate) Contingent Oil (Jurassic):
110.1 MMBO
Yam Yafo-1 P-Gabriella 1
Currently Israel Imports 99% of Consumption
Mainly from Azerbaijan and others
Oct 22, 2012: Brent $111.55 or $26 million each day not including transportation and other fees
Israel’s Oil Importation
Source: Ministry of Energy and Water Resources
Summary - The Oil Potential
•
Oil is the Next Resource Headline for Israel
Market immediately available
•
Upside Potential Along Syrian Arc Oil Trend
Shemen “Significant Indications of oil in the Yam 3 well” drilling in September 2013
•
Government Supportive
Security of supply
Daily importation approximately $25 million/day
Funds going to other countries
Internal production reduces dependency and costs
State additionally benefits through tax and royalty to producers
•
Risks Minimized
Shallow water depths
Projects are not technically challenging and near shore
Much of the internal infrastructure already in place
Pipelines and refining capacity
17
NI 51- 101 Compliant Resource Report
Netherland Sewell & Associates, Inc
Hydrocarbon
Classification
Best Estimate Gross
Oil
Contingent (2C)
(1)Jurassic (44°- 47° API)
110.1 MMBO
Condensate
Prospective p50
(2)Miocene
7.0 MMBO
Talme Yafe
4.7 MMBO
Gevar’Am
5.7 MMBO
Gas
Contingent (2C)
Jurassic
110.1 BCF
Prospective p50
Miocene
257.1 BCF
Talme Yafe
174.7 BCF
Gevar’Am
209.3 BCF
Gabriella
(1)Contingent Resources : 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.
(2) Prospective Resources: There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
The full report entitled “ Estimates of Unrisked Contingent and Prospective Resources to the Adira Energy Ltd. Interest in Discoveries and Prospects located in Block 387 (Gabriella) Offshore Israel “ is located on SEDAR
Hydrocarbon
Classification
Best Estimate Gross
Oil
Prospective p50
(1)Jurassic
79.1 MMBO
Condensate
Prospective p50
Gevar’Am
12.4 MMBO
Talme Yafe
13.2 MMBO
Gas
Prospective p50
Talme Yafe
486.7 BCF
Gevar’Am
457.4 BCF
NI 51- 101 Compliant Resource Report
Netherland Sewell & Associates, Inc
Yitzhak
Notes: MMBO = Millions of Barrels of Oil, BCF = Billion Cubic Feet of Gas
(1)Prospective Resources: There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
19
NI 51- 101 Compliant Resource Report
Netherland Sewell & Associates, Inc
Samue
l
(1)Prospective Resources: There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
The full report entitled “Estimates of Unrisked Prospective Resources to the Adira Energy Ltd. Interest in Certain Oil Prospects located in Block 388 (SAMUEL) Offshore Israel “ is located on SEDAR
