UK-based Zeta Petroleum has struck a deal with Serbian oil and gas firm NIS, majority-owned by Russian Gazprom, to drill an exploration well west of Romania in the Jimbolia concession, which has prospective resources of 1.72 million barrels of oil.

Australian listed Zeta Petroleum will grant a 51 percent stake in the concession to NIS that will pay the full costs of the next exploration well to be drilled in Jimbolia and the payment of contingent cash amounts to Zeta.

Zeta Petroleum will grant a 10 percent stake to Romanian Armax Gaz to settle an ongoing dispute from a previus joint venture agreement.

This is the latest endeavor of NIS in Romania after announcing this summer plans to open 120 gas stations here in the next two years.

“We are extremely pleased with bringing in a partner of NIS/Gazprom’s calibre on the Jimbolia concession. We are now well placed to drill the Jimbolia exploration well later this year, which is estimated to cost EUR 4 million, and bring this oil field into production,” said Stephen West, managing director of Zeta Petroleum.

Zeta Petroleum is an independent oil and gas explorer and developer with a focus on Romania. The company controls the Bobocu Gas Field, with a potential gas resource of 44.36 Bcf (billion cubic feet) and prospective resources of 14.09. It also holds a 50 percent non-operating interest in the producing Suceava concession.

The company has three prospecting permits covering 6000 square meters in areas with hydrocarbon potential in Romania, but is also looking to expand in the Eastern European territory.

Source: business-review.ro