Zeta Petroleum plc, the ASX listed Romanian focused oil and gas exploration and production company, is pleased to announce a positive update on its 50% owned Suceava gas concession in Romania, covering an area of 2,403 sq km upon which the producing Climauti gas field is located. Raffles Energy S.R.L. (‘Raffles’) is the operator and holds the remaining 50% interest in the licence.
Zeta Petroleum plc Managing Director Stephen West said, "These two gas discovery wells on Suceava highlight the concession’s prospectivity and represent a low cost route to materially increase our net revenues later this year. We anticipate the two wells will recover their costs within 12 months, freeing up capital and generating revenues that can be reinvested elsewhere across our portfolio of assets. This includes our previously producing 100% owned Bobocu licence and a 39% interest in the Jimbolia concession where NIS Gazprom Neft is currently drilling the Jimbolia100 well into the Veche discovery, which has the potential to hold Pmean contingent resources of 1.72MMbbls. 2013 promises to be a highly active year for Zeta and I look forward to providing the market with updates on our progress in due course."
Zeta has a 50% interest in Suceava which is operated by Raffles. The 2,403 sq km concession is located on the Moldovian platform, approximately 370 km north of Bucharest and is contiguous to the Chevron owned Barlad concession. The Suceava concession includes the Climauti gas field which is currently producing 15,500m3/day from Sarmatian sands from a depth of approximately 460 metres.
Zeta and Raffles (Operator) have agreed to commence a feasibility study on how best to bring two existing gas discovery wells into production in 2013, and in the process, significantly increase current production from the concession. Both wells were successfully drilled by previous owners of the concession and flowed commercial rates of gas in tests: the SE-1 drilled in 2005, tested at a stable rate of 25,500 m3/day (peak rate in excess of 33,000 m3/day) and the Dornesti Sud-1, which was drilled in
2007, tested at 24,000 m3/day.
Low cost options to bring the two wells back into production will be considered by the feasibility study and will include constructing conventional facilities and a pipeline from the two wells to an existing main pipeline as well as utilising gas-topower technology. It is estimated that the cost of the conventional facilities and pipeline option will be approximately €2 million (€1 million net to Zeta) and the gasto-power
option is likely to be significantly less. These cost estimates will be
confirmed by the results of the feasibility study.
Based on the tested flow rates of both wells, the Company is targeting additional revenues net to Zeta of US$75,000 per month from the two wells, increasing Zeta’s total revenues to US$100,000 per month. Combined with the relatively low capital outlay, the Directors believe the two wells have the potential for rapid payback of capital (recover costs).
Across the Suceava concession, the Directors believe there is the potential for up to 80Bcf (unrisked) of shallow conventional gas based on five leads and prospects identified at depths of between 400 to 1,000 metres.
Source: Zeta Petroleum plc
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