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Adira Energy Ltd. (ADENF) Signs Farm Out Agreements on Offshore Oil and Gas License

|Includes: Adira Energy, Ltd. (ADENF)

Adira Energy Ltd. announced it has signed two agreements to farm out a portion of the working interest in the company’s oil and gas concession license located offshore Israel.

Adira Energy controls an 85% working interest in the Yitzchak license, which was awarded by the Israeli government to explore in the Mediterranean Sea. The license covers approximately 32,000 acres of shallow water area suitable for exploration.

Adira Energy plans to farm out a 5% working interest in the Yitzchak license to AGR Group, and will designate AGR Group as the lead operator of the license. The company will also be the engineering services contractor on the license. Adira Energy also plans to farm out a 20% working interest in the Yitzchak license to Ellomay Oil and Gas 2011 LP, which is a wholly owned subsidiary of Ellomay Capital Ltd.

Adira Energy said that the agreements call for both companies to pay a proportionate share of the costs that Adira Energy Ltd. has incurred to date on the license. Both agreements are subject to certain conditions prior to going into effect. These include approval by the Israeli Petroleum Commissioner and the negotiation of a joint operating agreement between the three companies.

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