OilVoice - Brownstone JV Partner Acquires New Offshore Israel Interest

Brownstone JV Partner Acquires New Offshore Israel Interest

Wednesday, August 25, 2010

Brownstone Ventures Inc. announces that Adira Energy Ltd., Brownstone's joint venture partner in offshore Israel, has announced that it has signed a definitive co-operation agreement with Geo Global Resources Inc., and its wholly owned subsidiary, Geo Global Resources (India) Inc. (collectively "GGR") confirming the terms whereby GGR have agreed to assign an option it has to acquire up to a 5% participating interest in each of two deepwater licenses offshore Israel known as Petroleum Licenses 347 "Myra" and 348 "Sara", to Adira (the "M&S Options").

Pursuant to an agreement between Brownstone and Adira, Brownstone has the right, subject to certain conditions, to earn a 15% participating interest in Adira Energy's interest in all offshore licenses. See press release dated September 14, 2009.

The Myra and Sara licenses are located in the Levantine Basin which is located off the western coast of Israel in the Mediterranean Sea, in waters approximately 1,400 meters deep, approximately 35 km from the recent 8.4 TCF Tamar 1, Tamar 2, and adjacent to the 0.5 TCF Dalit natural gas discoveries by the Noble Energy consortium. The Sara license covers an area of approximately 404 square kilometers (156 square miles) and the Myra license covers an area of approximately 396 square kilometers (153 square miles).

3D seismic data for Myra and Sara has been shot, acquired, and processed. The 3D seismic data in respect of the Myra and Sara licenses has been submitted to the Ministry of National Infrastructures ("MNI"). The initial interpretation of the results of the 3D seismic data was completed and a report submitted to the MNI on August 1, 2010. It is expected that the during the remainder of 2010 the following will occur: an initial prospect on each license is to be prepared during September 2010; a report on the hydrocarbon system on the licenses by October 2010, and final preparation of the prospects, together with well plans should be completed by December 31, 2010, all as per the agreed work program in the license awards. A contract with a drilling contractor is expected by March 31, 2011, followed by an expected spud date of Q3 2011.

The Myra and Sara licenses before the exercise of the M&S Options are held by a consortium of owners comprising of Emmanuelle Energy Ltd. (24.161% participating interest) Emmanuelle Energy - Gas and Oil Explorations Limited Partnership (19.161% participating interest), Modiin Energy - Limited Partnership (19.282% participating interest) (Adira Energy's participating interest partner of the Gabriella License, where Brownstone also has an interest), I.P.C. Oil and Gas (Israel), Limited Partnership (13.609% participating interest), The Israel Land Development Company Ltd. (5% participating interest), IDB Development Corporation Ltd. (5% participating interest), Blue Water Oil & Gas Exploration Ltd. (8.787% participating interest), GeoGlobal Resources (India) Inc. (5% participating interest and Operator).