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Corporate Presentation
TSX.V: ADL
A TSX-V Listed Oil and Gas Company
Exclusively Focused on the East Mediterranean
Corporate Presentation
September 2013
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TSX.V: ADL
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
failure to obtain or maintain necessary licenses, and risks associated with the common shares of the
Corporation, such as stock market volatility.
Source: USGS, Levant Basin
.
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TSX.V: ADL
The Opportunity
East Mediterranean
Adira Energy
•
Host of two of the largest worldwide gas discoveries
of the decade
•
Exclusive exposure to the East Med offshore oil and
gas discovery region
•
Oil - the next resource headline story for Israel
•
Looking for oil where it has already been found
•
USGS estimates Levant Basin 122TCF gas,
1.7BBbL oil
•
NI 51- 101 Resource Reports complete on Gabriella
Yitzhak, Samuel licenses
•
Noble Energy’s recent estimates on the Mesozoic
oil potential at Leviathan (gross unrisked resource)
210 MMBOE – 1.5BBOE, Drill Rig mobilized
•
Licenses near infrastructure, near shore, and
technically routine
•
Syrian Arc Commercial Production in Syria and
Egypt, associated structures form the oil trend in
Israel
•
Board, management and technical teams with
extensive knowledge of region and experience in
public markets
•
Regional demand for oil - Israel currently imports
230,000 BOPD, 100% of its demand
•
International E&P Interest: Gazprom and
Woodside bidding on Leviathan
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TSX.V: ADL
Board and Key Management
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
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Business, as well as LLE, Radzyner School of Law, Interdisciplinary Center, Herzliya.
East Med Licenses and Discoveries
TSX.V: ADL
LEBANON
CYPRUS
Herzliya
Tel Aviv
ISRAEL
Legend
Adira Blocks
Ashdod
Discovery Blocks
Gas Fields
Ashkelon
Previous wells
EGYPT
TSX.V: ADL
Levant Basin Discoveries Since 2009
Discovery
Size
Tamar
10 TCF
Dalit
0.5 TCF
Leviathan
16.7 TCF
Cyprus
5+ TCF
Tanin
1.2 TCF
Dolphin
0.6 TCF
Shimshon
0.5 TCF
Total Discoveries
Possible Deep Oil
34.5+ TCF
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TSX.V: ADL
International E&P Interest – East Med
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
Gazprom
Total
CYPRUS
French multinational oil and gas Company. One of
world’s 6 “Super Majors”
ENI
KOGAS
ENI
KOGAS
TOTAL
TOTAL
GAZPROM
KOGAS
Korean public natural gas company. World’s largest
LNG import company
LEBANON
ENI
Italian multinational oil and gas company, in 79
countries, currently Italy's largest industrial company
NOB LE
Legend
2nd Licensing Areas
Authorized Areas
ISRAEL
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The Syrian Arc
TSX.V: ADL
East Mediterranean Production
Adira Energy
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TSX.V: ADL
East Mediterranean Syrian Arc Ridge & the Shemen findings
SSW
NNE
Yam-3
Yam-2
~800 BOPD
Yam Yafo-1
~800 BOPD
P Gabriella-1
Delta-1
NDE*
P Yitzhak-1
Top
Zohar
Shemen
Gabriella
Yitzhak
(* Not Deep Enough)
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
P Yitzhak -1
Delta -1
P Gabriella - 1
Yam Yafo-1
TSX.V: ADL
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
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TSX.V: ADL
Israel’s Oil Trend
Project
Yam Hadera
Modiin
Yitzhak
Adira
Gabriella
Adira
Shemen
Shemen
Samuel
Adira*
TOTAL
Best Estimate Gross
208 mmbo
79 mmbo
110 mmbo (contingent)
270 mmbo
66 mmbo (contingent)
658 mmbo
(*) License has expired and may not be renewed by the Ministry
TSX.V: ADL
Yitzhak License (31,689 Acres) Co-Operator: Adira/AGR
P50 (Best Estimate) Prospective Oil (Jurassic):
79.1 MMBO
Target: Oil
Mid Jurassic , Zohar- Fractured Carbonates
Target: Gas
Cretaceous Talme Yafe carbonates and sands
Target: Condensate Cretaceous Talme Yafe carbonates and sands
129 Km2 3D completed by Adira (WesternGeco), processing
Exploration:
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
Yitzhak Structure- Depth
3D seismic
survey
COMPLETE
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.
Processing &
interpretation
COMPLETE
Resource
Report
COMPLETE
Long lead items
and rig contract
2014/2015(*)
Spud well
2014/2015(*)
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(*) Subject to Ministry approval
TSX.V: ADL
Gabriella License (96,371 Acres) Operator: Adira Energy
2C (Best Estimate) Contingent Oil (Jurassic):
Target: Oil
Jurassic fractured carbonates
Target: Gas
Cretaceous limestone and sands
110.1 MMBO
Miocene stratigraphic
Target: Condensate Cretaceous limestone and sands
Miocene stratigraphic
Exploration:
587 Km2 Dual 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 (440
API)
P-Gabriella 1
Yam Yafo-1
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
Gabriella Structure- Depth
3D seismic
survey
COMPLETE
Processing &
interpretation
COMPLETE
Resource Report
and Procurement
of long lead items
COMPLETE
Rig contract
2014(*)
Spud well
2014(*)
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(*) Subject to Ministry approval
TSX.V: ADL
Israel’s Oil Importation
Avg. 238,000 BOPD
Source: Ministry of Energy and Water Resources
Oct 22, 2012: Brent $111.55 or $26 million each day not including transportation and other fees
Currently Israel Imports 99% of Consumption
Mainly from Azerbaijan and others
TSX.V: ADL
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
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TSX.V: ADL
Appendices
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TSX.V: ADL
NI 51- 101 Compliant Resource Report
Netherland Sewell & Associates, Inc
Gabriella
Hydrocarbon
Classification
Best Estimate Gross
Contingent (2C) (1)
Oil
Jurassic (44°- 47° API)
110.1 MMBO
Prospective p50 (2)
Condensate
Miocene
7.0 MMBO
Talme Yafe
4.7 MMBO
Gevar’Am
5.7 MMBO
Contingent (2C)
Jurassic
Gas
110.1 BCF
Prospective p50
Miocene
257.1 BCF
Talme Yafe
174.7 BCF
Gevar’Am
209.3 BCF
Notes: MMBO = Millions of Barrels of Oil, BCF = Billion Cubic Feet of Gas
(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
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TSX.V: ADL
NI 51- 101 Compliant Resource Report
Netherland Sewell & Associates, Inc
Yitzhak
Hydrocarbon
Classification
Best Estimate Gross
Prospective p50 (1)
Oil
Jurassic
79.1 MMBO
Prospective p50
Condensate
Gevar’Am
12.4 MMBO
Talme Yafe
13.2 MMBO
Prospective p50
Gas
Talme Yafe
486.7 BCF
Gevar’Am
457.4 BCF
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.
The full report entitled “Estimates of Unrisked Prospective Resources to the Adira Energy Ltd. Interest in Certain Prospective
Reservoirs located in Block 380 (Yitzhak) Offshore Israel “ is located on SEDAR
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TSX.V: ADL
NI 51- 101 Compliant Resource Report
Netherland Sewell & Associates, Inc
Samuel
Hydrocarbon
Classification
Best Estimate Gross
Prospective p50 (1)
Oil
Talme Yafe
32.6 MMBO
Upper Jurassic Reef
31.1 MMBO
Upper Jurassic Structural
0.63 MMBO
Barnea Formation – Jurassic Structural
1.50 MMBO
Prospective p50
Gas
Talme Yafe
32.6 BCF
Upper Jurassic Reef
31.1 BCF
Upper Jurassic Structural
0.63 BCF
Barnea Formation – Jurassic Structural
1.50 BCF
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.
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
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TSX.V: ADL
Capitalizing on Undiscovered Potential: Levant Basin
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TSX.V: ADL
Minister Visit, Israel Office
Joe Oliver, Canadian Minister of Natural Resources
Uzi Landau, Ex-Israeli Minister of Energy and Water
Resources
June 2012
August 2012
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TSX.V: ADL
Adira Energy TSX.V: ADL
(OCTBB, US: ADEND, Frankfurt: AOM)
Capital Structure September 2013
Shares Issued & Outstanding
Contact Information
60.2M
Warrants
32.5M
ESOP (assume 10% fully issued)
6.0 M
Fully Diluted Shares
98.7M
Corporate Office:
Canada
120 Adelaide Street
West, Suite 1204
Toronto, Ontario
M5H 1T1
Canada:
Alan Friedman
Exec. Vice President, Corporate
Development
+1 416 250 1955
Warrants
Nov 2010
Aug 2012
4.6m warrants at $1.65 exp. Dec 2013
0.5 broker warrants at $1.20 exp. Dec 2013
26.3m warrants at $0.20 exp. Aug 2015
1.1m broker warrants at $0.42 exp. Aug 2014
Israel Office:
Medinat HaYehudim 60
Herzlia Pituach
Israel, 4676652
Israel:
Gadi Levin
Chief Financial Officer
+972 (0) 3 373 0166
www.adiraenergy.com
[email protected]
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