Adira Energy Ltd. reported that Modi'in Energy L.P signed an addendum to the detailed drilling contract it has with Noble International Limited in respect of the Company's Gabriella license. Adira further announced it has entered into a corresponding agreement (the "Agreement") with Modi'in and Brownstone Energy Inc.

The Addendum amends key terms of the original drilling contract to include among others, the provision of (i) a Letter of Credit as collateral to Noble Drilling in two phases; $20 million by January 3, 2013 and $13.2 million by January 31, 2013 (Adira's corresponding obligation is to provide its proportionate contribution in the amount of $5 million by January 25, 2012; (ii) a reduction in the daily drilling rate from $500,000 per day to $415,000 per day; (iii) to the extent used, reduction in stand-by rates to between $100,000 and $300,000 per day; and (iv) the Gabriella consortium taking possession of the Homer Ferrington rig directly after the completion of its current drilling program, which is up to three months earlier than originally anticipated.

Tags: Adira Energy Ltd.