Adira Energy Ltd. (TSXV:ADL,OTCBB:ADENF,FWB:AORLB8) announced that Noble International Ltd has accepted a Letter of Award which will enable Modiin Energy L.P to execute a detailed drilling contract on behalf of the Gabriella consortium partners, including Adira and Brownstone Energy. Adira further announces it has signed a Memorandum of Understanding with Modiin Energy on the Gabriella License to secure a drill contractor to commence drilling.
As quoted in the press release:
Where the Agreement requires the provision of a Letter of Credit or a Cash Deposit as collateral to Noble Energy, the Parties shall together decide which form of collateral to provide (“Rig Collateral”). Pursuant to the LOA, the consortium will finalize the Agreement to secure the Noble Homer Farrington rig for a minimum of 75 days for a program that is expected to include one well plus sidetrack.
Additionally, Adira grants Modiin Energy, effective once the Agreement has been signed, an irrevocable option to purchase (“Option”) from Adira, a 15% participating interest in the Yitzhak License (“the “Option Interest”). Modiin Energy shall be entitled to exercise the Option until the earlier of (1) December 31, 2012, and (2) the 30th day from the date Adira notifies Modiin Energy of the execution of an agreement with a drilling contractor in relation to Yitzhak License.