Adira Energy to raise $25-30m ahead of TASE offering

Adira's shareholders include George Soros, BRM Capital, and Lapidoth Israel Oil.

Sources inform ''Globes'' that Canada's Adira Energy Corporation (XETRA: AORLB8; TSX: ADL; Bulletin Board: ADENF) is about to raise $25-30 million in a private placement ahead of an offering on the Tel Aviv Stock Exchange (TASE) scheduled for later this year. The company has already submitted a draft prospectus with the Israel Securities Authority.

Adira's shareholders include George Soros's Quantum Fund, Eli Barkat's BRM Capital, and Lapidoth Israel Oil Prospectors Corporation Ltd. (TASE: LAPD). Adira owns rights in the Gabriella, Yitzhak and Samuel licenses, located respectively 10 kilometers offshore between Netanya and Ashdod, 17 kilometers offshore between Hadera and Netanya, and adjacent to the coast between Ashkelon and Bat Yam.

Last week Adira announced the completion of the sale of 25% of the offshore Yitzhak license to Ellomay Capital Ltd. (AMEX: ELLO) units Ellomay Oil and Gas 2011 LP and AGR Group Inc., after receiving approval from the Petroleum Commissioner.

Adira had $9 million in cash at the end of 2011, and the estimated cost of drilling exploratory wells in its licenses is $180 million, of which the company's share is $60-70 million. The company plans to raise the necessary capital in two stages: first through the private placement among US and other investors, at a company value of $30-40 million; followed by an offering on the TASE at a higher valuation.

Also in the gas exploration industry, IPC Oil and Gas Holdings Ltd. (IPC) (TASE: IPC), which owns 6.8% of the Sarah and Myra licenses, raised NIS 14 million in an offering of shares and warrants. Gulliver, which owns the eponymous offshore license, plans to hold a rights issue in the next couple of months to develop the license.

Published by Globes [online], Israel business news - - on January 15, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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