Corporate Presentation September 2013

Transcription

1 A TSX-V Listed Oil and Gas Company Exclusively Focused on the East Mediterranean Corporate Presentation September

2 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. 2

3 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 Adira Energy Exclusive exposure to the East Med offshore oil and gas discovery region Looking for oil where it has already been found NI 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 International E&P Interest: Gazprom and Woodside bidding on Leviathan 3

4 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 Holds a BA, Business (Finance) from the Arison School of Business, as well as LLE, Radzyner School of Law, Interdisciplinary Center, Herzliya. 4

5 East Med Licenses and Discoveries TSX.V: ADL CYPRUS LEBANON Herzliya Tel Aviv ISRAEL Legend Adira Blocks Discovery Blocks Gas Fields Previous wells Ashdod Ashkelon EGYPT

6 Levant Basin Discoveries Since 2009 Discovery Tamar Dalit Size 10 TCF 0.5 TCF Leviathan 16.7 TCF Possible Deep Oil Cyprus Tanin Dolphin Shimshon Total Discoveries 5+ TCF 1.2 TCF 0.6 TCF 0.5 TCF TCF 6

7 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 CYPRUS ENI KOGAS Total French multinational oil and gas Company. One of world s 6 Super Majors TOTAL TOTAL GAZPROM ENI KOGAS LEBANON KOGAS Korean public natural gas company. World s largest LNG import company Legend 2 nd Licensing Areas NOB LE ENI Italian multinational oil and gas company, in 79 countries, currently Italy's largest industrial company Authorized Areas ISRAEL 7

8 The Syrian Arc East Mediterranean Production TSX.V: ADL Adira Energy 8

9 SSW TSX.V: ADL East Mediterranean Syrian Arc Ridge & the Shemen findings Yam-3 NNE Yam-2 ~800 BOPD Yam Yafo-1 ~800 BOPD P Gabriella-1 Delta-1 NDE* P Yitzhak-1 Top Zohar Shemen Gabriella Yitzhak Gabriella & Yitzhak Structures Contiguous to Shemen (* Not Deep Enough) 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 days P Yitzhak -1 Delta -1 P Gabriella - 1 Yam Yafo-1

10 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 10

11 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

12 Yitzhak License (31,689 Acres) Co-Operator: Adira/AGR P50 (Best Estimate) Prospective Oil (Jurassic): 79.1 MMBO Yitzhak Structure- Depth 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 2 3D 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 Extension application Submitted. Awaiting extension from the Ministry. 3D seismic survey COMPLETE Processing & interpretation COMPLETE Resource Report COMPLETE Long lead items and rig contract 2014/2015(*) Spud well 2014/2015(*) 12 (*) Subject to Ministry approval

13 Gabriella License (96,371 Acres) Operator: Adira Energy 2C (Best Estimate) Contingent Oil (Jurassic): MMBO P-Gabriella 1 Yam Yafo-1 Gabriella Structure- Depth Target: Oil Target: Gas Jurassic fractured carbonates Cretaceous limestone and sands Miocene stratigraphic Target: Condensate Cretaceous limestone and sands Miocene stratigraphic Exploration: 587 Km 2 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 (44 0 API) Drilling: Economic Interest: 15% WI Shallow water 127 to 220 meters. Floater Partners: Brownstone Energy 15%, Modi in Energy 70% Status: License expired in September Extension Application Submitted. Awaiting extension from the Ministry. May be forced to relinquish interest to partners 3D seismic survey COMPLETE Processing & interpretation COMPLETE Resource Report and Procurement of long lead items COMPLETE Rig contract 2014(*) Spud well 2014(*) 13 (*) Subject to Ministry approval

14 Israel s Oil Importation Avg. 238,000 BOPD Source: Ministry of Energy and Water Resources Oct 22, 2012: Brent $ or $26 million each day not including transportation and other fees Currently Israel Imports 99% of Consumption Mainly from Azerbaijan and others

15 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 15

16 Appendices 16

17 NI Compliant Resource Report Netherland Sewell & Associates, Inc Gabriella Hydrocarbon Classification Best Estimate Gross Oil Condensate Gas Contingent (2C) (1) Jurassic (44-47 API) Prospective p50 (2) Miocene Talme Yafe Gevar Am Contingent (2C) Jurassic Prospective p50 Miocene Talme Yafe Gevar Am MMBO 7.0 MMBO 4.7 MMBO 5.7 MMBO BCF BCF BCF 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 17

18 NI Compliant Resource Report Netherland Sewell & Associates, Inc Yitzhak Hydrocarbon Classification Best Estimate Gross Oil Condensate Gas Prospective p50 (1) Jurassic Prospective p50 Gevar Am Talme Yafe Prospective p50 Talme Yafe Gevar Am 79.1 MMBO 12.4 MMBO 13.2 MMBO BCF 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 18

19 NI Compliant Resource Report Netherland Sewell & Associates, Inc Samuel Hydrocarbon Classification Best Estimate Gross Prospective p50 (1) Oil Gas Talme Yafe Upper Jurassic Reef Upper Jurassic Structural Barnea Formation Jurassic Structural Prospective p50 Talme Yafe Upper Jurassic Reef Upper Jurassic Structural Barnea Formation Jurassic Structural 32.6 MMBO 31.1 MMBO 0.63 MMBO 1.50 MMBO 32.6 BCF 31.1 BCF 0.63 BCF 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 19

20 Capitalizing on Undiscovered Potential: Levant Basin TSX.V: ADL 20

21 Minister Visit, Israel Office Joe Oliver, Canadian Minister of Natural Resources Uzi Landau, Ex-Israeli Minister of Energy and Water Resources June 2012 August

22 Adira Energy TSX.V: ADL (OCTBB, US: ADEND, Frankfurt: AOM) Capital Structure September 2013 Shares Issued & Outstanding 60.2M Warrants 32.5M ESOP (assume 10% fully issued) 6.0 M Fully Diluted Shares 98.7M Warrants Nov m warrants at $1.65 exp. Dec broker warrants at $1.20 exp. Dec 2013 Aug m warrants at $0.20 exp. Aug m broker warrants at $0.42 exp. Aug 2014 Contact Information Corporate Office: Canada 120 Adelaide Street West, Suite 1204 Toronto, Ontario M5H 1T1 Israel Office: Medinat HaYehudim 60 Herzlia Pituach Israel, Canada: Alan Friedman Exec. Vice President, Corporate Development Israel: Gadi Levin Chief Financial Officer +972 (0) info@adiraenergy.com 22