corporate presentation -...
TRANSCRIPT
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TSX.V: ADL
A TSX-V Listed Oil and Gas Company Exclusively Focused on the East Mediterranean
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Corporate Presentation July 2012
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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.
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Source: USGS, Levant Basin
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TSX.V: ADL
The Opportunity
East Mediterranean
The host of the two largest worldwide gas discoveries of this decade
Oil could be the next natural resource headline story for Israel
USGS estimates Levant Basin 122TCF gas, 1.7BBbL oil*
Noble Energy estimates on deep Leviathan targets 1. 17% pos. 3BBbl oil 2. 8% pos. 1.2BBbl oil
Syrian Arc extends from Syria to Egypt -current East Med production and MMBOE reserves
Regional demand for oil - Israel currently imports 230,000 BOPD
Adira Energy
Pure & exclusive exposure to the offshore oil and gas discovery region, East Mediterranean
Looking for oil where it has already been found
Major working interest and operator of three offshore licenses
Two NI 51- 101 Resource Reports complete on Gabriella and Yitzhak licenses with million barrels of oil equivalent
Samuel license with blue sky potential
Licenses close to infrastructure, near shore, and technically routine
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* Source: USGS. Estimates may not be NI 5I 101 compliant
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TSX.V: ADL
27 Years with Noble Energy, 8 Years Exclusive Focus East Med Region Former Vice President of Europe and Mediterranean, Noble Energy Led team responsible for Tamar Field offshore Israel discovery - largest global conventional gas
discovery in 2009 with over 8 Tcf announced to date
Increased Nobles offshore Eastern Mediterranean portfolio which included the discovery of the Leviathan and Block 12 in Cyprus (increased acreage from 600,000 gross to 3,000,000 gross)
Former Vice President Latin America and Asia, Noble Energy Gas to power in Ecuador, heavy oil in China
Former International Exploration Manager, Noble Energy Increased Noble Energys international portfolio from 8% to over 57% of corporate resources
Includes successful exploration in Equatorial Guinea , Israel, North Sea, China, and other areas
Exploration in: Argentina, Australia, China, Denmark, Equatorial Guinea, Gabon, Ireland,
Netherlands, Norway, Portugal, Senegal, Spain, Suriname, United Kingdom, Vietnam
Geology degree, University of New Mexico
Background - Jeffrey E. Walter Chief Executive Officer
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East Mediterranean Licenses
Legend Adira Blocks
Discovery Blocks
Gas Fields
3D Resources/ imminent drilling
Previous wells
Syrian Arc previous wells
Note: Estimates may not be NI 51-101 Compliant
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TSX.V: ADL
Levant Basin
East Mediterranean Production
The Syrian Arc
Western Desert Production 99,000 BOPD (Apache)
Syrian Production 400,000 BOPD
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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
GevarAm 5.7 MMBO
Gas
Contingent (2C) Jurassic 110.1 BCF
Prospective p50 Miocene 257.1 BCF
Talme Yafe 174.7 BCF
GevarAm 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
Notes: MMBO = Millions of Barrels of Oil, BCF = Billion Cubic Feet of Gas
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TSX.V: ADL
Hydrocarbon Classification Best Estimate Gross
Oil Prospective p50 (1)
Jurassic 79.1 MMBO
Condensate
Prospective p50
GevarAm 12.4 MMBO
Talme Yafe 13.2 MMBO
Gas
Prospective p50
Talme Yafe 486.7 BCF
GevarAm 457.4 BCF
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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. 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
Gabriella Structure
Yitzhak Structure
Yitzhak
East Mediterranean Structural Ridge
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Gabriella & Yitzhak Structures
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TSX.V: ADL
Target: Oil Jurassic fractured carbonates Target: Gas Cretaceous limestone and sands Miocene stratigraphic Target: Condensate Cretaceous limestone and sands Miocene stratigraphic Exploration: 511 Km Dual Azimuth 3D completed Jan 2011 by Adira (WesternGeco), Processing completed by CGG Veritas Prior Drilling: Yam Yafo-1 Well: Drilled in 90s to 5,823m tested 800 bopd (440
API) Drilling: Shallow water 120 to 200 meters. Floater Operator: Adira 15% WI plus 15% back-in option from Modiin Energy at
cost, plus ~10% ORRI and management fees, combined Partners: Brownstone Energy 15%, Modiin Energy 70%
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Gabriella Structure- Depth
Gabriella License (96,371 Acres)
3D seismic survey
COMPLETE
Processing & interpretation COMPLETE
Resource Report
COMPLETE
Procurement of long lead items and rig
contract IN PROGRESS
Spud well Q2/13
2C (Best Estimate) Contingent Oil (Jurassic): 110.1 MMBO
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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 3D completed by Adira (WesternGeco), processing completed by CGG Veritas Prior Drilling: Delta-1 Well drilled (off structure) in 1970s 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 140 to 200 meters. Floater Co-Operator: Adira 60% WI, up to 4.5% ORRI from AGR & Ellomay Partners: Brownstone Energy 15%, AGR 5%, Ellomay 20%
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p50 (Best Estimate) Prospective Oil (Jurassic): 79.1 MMBO
Yitzhak Structure- Depth
Yitzhak License (31,689 Acres)
3D seismic survey
COMPLETE
Processing & interpretation COMPLETE
Resource Report
COMPLETE
Procurement of long lead items and rig
contract IN PROGRESS
Spud well Q3/13
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Capital Structure, December 31, 2011
Shares Issued & Outstanding 101.8M
Warrants 15.1M
ESOP 10 M
Fully Diluted Shares 126.9M
Financings to Date Proceeds
Sept 2009 8.0m units at $0.25 (half warrant at $0.50 expired) $2.5M USD
Nov 2010 27.5m units at $0.40 (half warrant at $0.55) Warrants expire December 2013
$11M USD
Feb 2011 10.5m shares at $0.62 $6.5M CAN
Adira Energy TSX.V: ADL (OCTBB, US: ADENF, Frankfurt: AORLB8)
Holdings
Management + Board 30%
Institutional 40%
Retail 30%
Market Capitalization $22M (*)
Average Daily Volume (TSX) - 2012 113,000
(*) As of April 5, 2012
Analyst Coverage
Cormark Securities
Clarus Securities
GMP Securities
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TSX.V: ADL
Dennis Bennie - Chairman, Independent Director 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). Richard P. Crist Independent Director Over 42 years of oil and gas experience, with a broad range of managerial and technical expertise that includes 25 years in corporate and senior management roles. Prior to being appointed an officer of Gasco Energy where he is currently employed, he has held various senior managerial positions including Executive Vice President Business Development for Delek US, Executive Vice President, Business Development for Elk Resources, a privately held, Denver-based oil and gas company. Mr. Crist earned his degree as an engineer of geophysics with a minor in geology from the Colorado School of Mines in Golden, Colo. He is a member in good standing of the Society of Exploration Geophysicists and the American Association of Petroleum Geologists and is a Certified Petroleum Geologist. Sheldon Inwentash - Independent Director A Chartered Accountant with over 20 years experience in investment industry. Chairman and CEO of Brownstone Energy and also the Chairman and CEO of Pinetree Capital Ltd., a Canadian investment company with a portfolio of investments primarily in the resource and energy sectors. 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). 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. Jeffrey E Walter Director and Chief Executive Officer
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Board of Directors
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TSX.V: ADL
Jeffrey E Walter - Chief Executive Officer Oil and Gas executive with over 30 years in the industry, 27 of which with Noble Energy. Was Vice President for the Europe and Mediterranean business group based in London and led teams responsible for recent world class discoveries in Israel and was responsible for the initial success of the Mari B and Noa fields.
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. Bachelor of Commerce degree in Accounting and Information Systems and MBA from Bar Ilan University in Israel. Has a Chartered Accountant Designation.
Alan Friedman - Executive Vice President - Corporate Development, Director
Moshe Politi - Chief Geologist 39 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 Business, as well as LLE, Radzyner School of Law, Interdisciplinary Center, Herzliya.
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Management
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Capitalizing on Undiscovered Potential: Levant Basin
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Brownstone Energy Inc (Formerly Brownstone Ventures) (Gabriella, Yitzhak, Samuel) A Canadian-based, TSX-V listed, energy-focused company with direct interests in oil and gas assets around the world. Brownstone has
the right, subject to certain conditions, to earn a 15% Working Interest in Adiras offshore blocks for three years.
Pinetree Capital Ltd (Samuel) A Canadian-based, TSX listed diversified investment, financial advisory and merchant banking firm focused on investing in early stage
resource companies. 10% Working Interest in the Samuel block.
GeoGlobal Resources Inc (Samuel) AMEX listed, Canadian- based resource and operating company engaged in the exploration and development of petroleum and natural
gas reserves internationally. 42% Working Interest in the Samuel block.
Ellomay Oil and Gas 2011 LP (Yitzhak) Israeli public company whose shares are listed on the NYSE Amex stock exchange, which focuses its business in the energy and
infrastructure sectors worldwide. Assets include ten photovoltaic plants in Italy with an aggregated capacity of approximately 11 MW and holdings in Dorad, Israel's largest private power plant. 20% Working Interest in the Yitzhak block
AGR Group ASA (Yitzhak) Headquartered in Norway with operations and offices in Europe, Middle East, Commonwealth of Independent States (Russia,
Azerbaijan and Kazakhstan), Asia Pacific and Americas, is a leading provider of essential services and technologies to the international petroleum industry. AGR operates in the areas of construction and managing of drilling programs, exploration, development, production and project maintenance. 5% Working Interest in the Yitzhak block
Modiin Energy Limited Partnership (Gabriella) Tel Aviv- based oil and gas investment group. farmed-in 70% interest in the Gabriella License. Adira has a back-in option from Modiin
of 15% of the Modiin working interest at cost, for a period of six months after a discovery. Adira operating royalty from Modiin of 4.25% Combined (ORRI ) royalty of 4.5%, increases to 10.5% after cost recover
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License Partners
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TSX.V: ADL
Corporate Office:
Canada 120 Adelaide Street West, Suite 1204 Toronto, Ontario M5H 1T1
Israel Office:
12 Abba Hillel Silver, 12th Floor Ramat Gan, 52506
Canada: Alan Friedman Exec. Vice President, Corporate Development +1 416 250 1955 Julia Maxwell Manager, Investor Relations [email protected] +1 416 361 2211 Israel: Gadi Levin Chief Financial Officer +972 (0) 3 373 0166
www.adiraenergy.com [email protected]
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Contact Information
http://www.adiraenergy.com/
Slide Number 1Forward Looking StatementsThe OpportunitySlide Number 4East Mediterranean LicensesSlide Number 6Slide Number 7Slide Number 8Slide Number 9Slide Number 10Slide Number 11Slide Number 12Slide Number 13Slide Number 14Capitalizing on Undiscovered Potential: Levant BasinSlide Number 16Slide Number 17