Naftna Industrija Srbije jsc Novi Sad, a subsidiary of Gazprom Neft, will fund a 12-well exploratory drilling program on four western Romanian blocks to earn an 85% participating interest, said East West Petroleum Corp., Vancouver, BC.
The EX-2 (Tria), EX-3 (Baile Felix), EX-7 (Periam), and EX-8 (Biled) blocks cover a combined 1 million acres in the Pannonian basin. NIS will fund all environmental work, 900 line-km of 2D and 600 sq km of 3D seismic acquisition and processing, and the drilling of at least 12 wells. It will also refund 100% of EWP’s sunk costs which total $525,000 (Can.). EWP will retain a 15% carried interest to commercial production on all four blocks.
The concession agreements and farmout are subject to ratification by the Romanian National Agency of Mineral Resources.
The blocks contain multiple exploration targets and have been moderately explored. Previous exploration was generally limited to shallow structural traps. East West has identified structural and stratigraphic leads in the deeper section and will focus on conventional oil and gas and unconventional shale gas potential.
NIS is a leading explorer in this sector of basin. It is carrying out extensive E&P operations in the Vojvodina region of northern Serbia, adjacent to the Romanian Periam and Biled concessions. NIS’s operational capabilities and knowledge of regional geology are expected to contribute greatly to the success of the Romanian exploration program.