Corporate Presentation

TSX.V: ADL
A TSX-V Listed Oil and Gas Company
Exclusively Focused on the East Mediterranean
Corporate Presentation
March 2012
TSX.V: ADL
Forward Looking Statements
East Mediterranean
Except for statements of historical fact relating to Adira Energy Ltd., Adira Energy Holding Corp, Adira
Energy Israel Ltd., Adira Energy Israel Services Ltd., Adira Oil Technologies Ltd., Adira Geo Global
Ltd., Adira Energy CBM Ltd, Adira Energy Holdings (Barbados) Ltd, Adira Energy Investments
(Barbados) Ltd ("Corporations”), certain information contained herein, including statements regarding
the volume of well's natural gas reserves constitutes "forward-looking statements" within the meaning of
the United States Private Litigation Reform Act of 1995 or "forward-looking information" within the
meaning of the Securities Act (Ontario) or Forward Looking Statements as defined under the Israel
Securities' Law. Forward-looking statements are frequently characterized by words such as "target,”
"plan,” "expect,” "project,” "intend,” “believe,” "anticipate," and other similar words or statements that
certain events or conditions "may" or "will" occur. Forward-looking statements are based on the
opinions and estimates of management or advisors at the date the statements are made and are
subject to a variety of risks, uncertainties and other factors that could cause actual events or results to
differ materially from those projected in the forward-looking statements. The factors include the inherent
risks involved in the exploration and development of oil and gas properties, the uncertainties involved in
interpreting drilling and seismic results and other geological data, fluctuating oil and gas prices, the
possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the
availability and costs of financing needed in the future, the uncertainties inherent to conducting
business in Israel, the availability of supplies, unexpected adverse climate conditions, the reliance on
only a few key members of management, and other factors. The Corporation undertakes no obligation
to update forward looking statements, if circumstances or advisor or management estimates or opinions
should change. The reader is cautioned not to place undue reliance on forward-looking statements.
DISCLAIMER
The information contained in this presentation is confidential and for internal use only. The contents are
not to be reproduced or distributed to investors, the public or press. The information contained herein,
while obtained from sources which we believe are reliable, is not guaranteed as to its accuracy or
completeness. The contents of this documentation is for information purposes only and does not
constitute an offer to sell or a solicitation to purchase any securities referred to herein.
Estimates are based on geological, geophysical and other estimates received from third parties and/or
advisors and serve, at this time, only as estimates whereby there is no certainty, as of yet, with regards
them. No information contained in this presentation is compliant with NI-Policy 51-101 requirements.
The Corporations have not conducted estimates or independent evaluations of the said estimates. Any
estimates are expected to be updated as additional information is accumulated, including as a result of
the continued analysis of the well proceeds, the conduction of production tests and the conduction of
validation drilling, should they be conducted, and\or as a results of a variety of factors related to
projects searching for, and producing, natural gas.
None of the Corporations or any of the individuals associated thereto have independently confirmed or
verified the information contained in this presentation. The reader should take all reasonable actions to
satisfy itself as to the accuracy of the information contained in the document.
2
TSX.V: ADL
The Opportunity
East Mediterranean
Adira Energy
•
The host of the two largest worldwide gas
discoveries of this decade
•
Pure & exclusive exposure to the offshore oil and
gas discovery region, East Mediterranean
•
Oil could be the next natural resource headline
story for Israel
•
Major working interest and operator of three
offshore licenses
•
USGS estimates:
• Levant Basin 122TCF Gas, 1.7BBbL oil*
• *Syrian arc 1.4 BBbl oil
•
Two NI 51- 101 Resource Reports complete on
Gabriella and Yitzhak, Samuel license with “blue
sky” potential
•
Noble Energy estimates:
Deep Leviathon
• 17% pos. 3BBbl oil, 8% pos. 1.2BBbl
•
110.1MMBbl contingent oil, 79.1MMBbl “Best
Estimate” prospective oil and 1.8TCF
prospective gas and 43.0 MMBbl prospective
condensate
•
Syrian Arc extends from Syria to Egypt -current
East Med production
•
Looking for oil where it has already been found
•
High side estimate from NSAI at 1.7BBbl
•
Licenses close to infrastructure, near shore, and
technically routine
•
Regional demand for oil - Israel currently imports
230,000 BOPD
3
TSX.V: ADL
Board of Directors
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).
Eli Barkat - Independent Director
Chairman and Co-founder of BRM (major shareholder of Adira Energy), a recognized figure in the Israeli
business community, with more than 20 years of entrepreneurial, investment and business management
experience.
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.
Yael Reznik Cramer - Independent Director
VP Business Development of BRM Group, Currently sits on the boards of Backweb and Schema. A Certified
Public Accountant in Israel and holds a B.A degree in Accounting and Economics from the Hebrew University in4
Jerusalem and an MBA from Tel-Aviv University.
TSX.V: ADL
Jeffrey E. Walter
Chief Executive Officer
History With Noble Energy – 27 Years
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 Noble’s 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 Energy’s 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
TSX.V: ADL
Management
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.
6
East Mediterranean Licenses
TSX.V: ADL
7
The Syrian Arc
TSX.V: ADL
East Mediterranean Production
Levant
Basin
Western
Desert
TSX.V: ADL
Gabriella & Yitzhak Structures
Gabriella
Structure
East Mediterranean Structural Ridge
Yitzhak
Structure
Yitzhak
9
TSX.V: ADL
NI 51- 101 Technical Reports Summary
Netherland Sewell & Associates, Inc
Hydrocarbon
Classification
Best Estimate Gross
Attributable - Adira (*)
Oil (44°- 47° API)
Contingent (Gabriella)
110.1 MMBO
44.04 MMBO
Oil (44°- 47° API)
Prospective (Yitzhak)
79.1 MMBO
47.46 MMBO
189.2 MMBO
91.50 MMBO
Total
Condensate
Prospective (Gabriella)
17.4 MMBO
6.96 MMBO
Condensate
Prospective (Yitzhak)
25.6 MMBO
15.36 MMBO
Total 43.0 MMBO
22.32 MMBO
Gas
Contingent (Gabriella)
110.1 BCF
44.04 BCF
Gas
Prospective (Gabriella)
641.1 BCF
246.44 BCF
Prospective (Yitzhak)
1,023.2 BCF
613.92 BCF
Total 1,774.4 BCF
904.40 BCF
* Gabriella – 40% Economic working interest, Yitzhak – 60%
Notes: MMBO = Millions of Barrels, BCF = Billion Cubic Feet of Gas
10
TSX.V: ADL
Gabriella License (96,371 Acres)
C2 (Best Estimate) Contingent Oil :
P50 (Best Estimate) Prospective Condensate:
P50 (Best Estimate) Prospective Gas:
(Best Estimate) Contingent Gas:
110.1 MMBO
17.4 MMB
641.1 BCF
110.1 BCF
Target: Oil
Target: Gas
Gabriella Structure- Depth
3D Seismic
Survey
COMPLETE
Jurassic Fractured Carbonates: 4,900m
Cretaceous limestone and sands: 2,700m
Miocene stratigraphic: 1,950m
Target: Condensate Cretaceous limestone and sands: 2,700m
Miocene stratigraphic: 1,950m
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 90’s to 5,823m
tested 800 bopd (440 API)
Drilling:
Shallow water 120 to 200 meters. Jack-Up or 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%
Processing &
interpretation
COMPLETE
Resource
Report
COMPLETE
Procurement of
long lead items and
rig contract
IN PROGRESS
Spud Well
Q4 2012
11
TSX.V: ADL
Yitzhak License (31,689 Acres)
P50 (Best Estimate) Prospective Oil:
P50 (Best Estimate) Prospective Condensate:
P50 (Best Estimate) Prospective Gas:
Target: Oil
Target: Gas
Target: Condensate
Exploration:
Prior Drilling:
Drilling:
Operators:
Partners:
79.1 MMBO
25.6 MMB
1.0 TCF
Mid Jurassic , Zohar- Fractured Carbonates: 4,600m
Cretaceous Talme Yafe carbonates and sands: 2,300m
Cretaceous Talme Yafe carbonates and sands: 2,300m
129 Km 3D completed by Adira (WesternGeco), processing
completed by CGG Veritas
Delta-1 Well drilled (off structure) in 1970’s to 4,423m,TD in
Upper Jurassic where oil encountered in Mid Jurassic (Yam
Yaffo1 and Yam 2) Zohar formation tested for oil in Yam Yafo1 (4,890m – 4,995m) and Yam-2 Well (5,315m) interesting &
significant structural high
Shallow water 140 to 200 meters. Jack-Up or Floater
Adira 60% WI,
Brownstone Energy 15%, AGR 5%, Ellomay 20%
Yitzhak Structure- Depth
3D Seismic
Survey
COMPLETE
Processing &
interpretation
COMPLETE
Resource
Report
COMPLETE
Procurement of long lead
items and rig contract
IN PROGRESS
Spud Well
Q4 2012
12
TSX.V: ADL
Samuel License (89,205 Acres)
Exploration:
Processing:
Prior Drilling:
Drilling:
Operator:
Partners:
A
45 Km2 3D OBC (Completed) (ARIS Nefterazvedka)
Existing 2D indicates presence of DHI
Ongoing-ION-GXT
Yam-2 Well immediately west tested oil in Jurassic,
Ashdod oil field in Jurassic, Heletz oil field
(Lower Cretaceous)
Shallow water 30 to 100 meters
Adira GeoGlobal (Adira Lead) 41.25% WI
Brownstone Energy 6.75%, Pinetree Capital 10%,
GeoGlobal Resources 42%
B
3D Seismic
Survey
COMPLETE
Processing &
interpretation
Q2 2012
Resource
Report
Q2 2012
Procurement of long
lead items and rig
contract
IN PROGRESS
Spud Well
Q4 2012
13
TSX.V: ADL
The Adira Opportunity
Capitalizing on Israel’s Immediate Demand for O&G
•
Only exclusive East-Med focused company trading in
North America
•
Operator of all three licenses offshore with globally
acclaimed technical team
•
Two NI 51- 101 Resource Reports complete on Gabriella
and Yitzhak, Samuel license with “blue sky” potential
•
110.1MMBbl contingent oil, 79.1MMBbl “Best Estimate”
prospective oil and 1.8TCF prospective gas and 43.0
MMBbl prospective condensate
•
Licenses near shore, close to existing infrastructure,
technically routine development
•
Proven Board and Management teams
14
TSX.V: ADL
Adira Energy TSX.V: ADL
Capital Structure,
(OCTBB, US: ADENF, Frankfurt: AORLB8)
Holdings
December 31, 2011
Shares Issued & Outstanding
101.8M
Warrants
15.1M
ESOP
9.4M
Fully Diluted Shares
126.2M
Market Capitalization
$17M
Average Daily Volume- 2012
83,500
Management + Board
30%
Institutional
40%
Retail
30%
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
Analyst Coverage
Cormark Securities
$1.25 Target
Buy
Clarus Securities
$ 1.00 Target
Speculative Buy
GMP Securities
$ 1.40 Target
Buy
15
TSX.V: ADL
Appendices
16
TSX.V: ADL
Capitalizing on Undiscovered Potential: Levant Basin
17
TSX.V: ADL
Cross Section of The Levant Basin
•
Located off Israel's Mediterranean coast, encompasses an area of 83,000 square km with waters up to
1,700m deep, and mostly within Israeli territorial waters.
•
The first commercially viable discovery in Israel was made in 1999 with the Noa/Mari B fields (Yam Tethys
partnership) and began production in 2004.
Schematic of subsurface showing the Tamar and Leviathan discoveries
SE
18
TSX.V: ADL
USGS Levant Basin Assessment
Syrian Arc Trend estimated at 1.4 Bn BO
TSX.V: ADL
License Partners
Brownstone Energy Inc (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 Adira’s 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 Capital (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 (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 LP/GP (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
20
Peer Discoveries & Prospects, Israel
TSX.V: ADL
MARI- B
Initial reserves
Timeline
Annual Production Capacity
Participants
Operator
35BCM (1.2Tcf, 213mmboe)
Operational since 2004, expected depletion in 2013
3-4BCM
Delek Drilling (25.5%), Avner (23%), Delek Group (4.4%), Noble Energy (47.1%)
Noble Energy
TAMAR
Resource
Discovery Date
Expected start-up
Expected peak gas production (Phase
1)
Total Depth
Participants
Operator
8.7 Tcf (1.45boe)
Feb-09
2013
1,000-1200MMcf/day
5,000m
Delek Drilling (15.5%), Avner (15.6%), Noble Energy (36%), Isramco (28.8%), Dor Gas
(4%)
Nobel Energy
Resource
Discovery Date
Total Depth
Participants
Operator
16Tcf (2.9boe)
Dec-10
17% (estimated)
Delek Drilling (22.7%), Avner (22.7%), Noble Energy (39.7%), Ratio (15%)
Noble Energy
Resource 1
Depth
Probability
Resource 2
Total Depth
Probability
3bn Barrels (expected)
5,800m
17% (Estimated)
1.2bn Barrels (expected)
7,200m
8% (estimated)
Resource 1
Depth
Probability
Resource 2
Total Depth
Probability
Gas 6.5 TCF
3,700m
Mean value, NSAI report
Oil 150 MMBL
5,500m
Mean value, NSAI report
Resource 1
Depth
Probability
Resource 2
Total Depth
Probability
Oil: Bravo 127 MMBBL; Yam 142 MMBBL
5,700m
Mean value, NSAI report
Gas: Bravo 127 BCF, Yam 142 BCF
3,000m
Mean value, NSAI report
LEVIATHAN- Gas
*LEVIATHAN-Oil
*SARA & MYRA
*SHEMEN
21
* Resource not proven
TSX.V: ADL
Contact Information
Corporate Office:
Canada
120 Adelaide Street West, Suite 1204
Toronto, Ontario
M5H 1T1
Israel Office:
12 Abba Hillel Silver, 12th Floor
Ramat Gan, 52506
www.adiraenergy.com
[email protected]
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
22