Sterling Eyes Romanian Shale Gas

Sterling Resources Ltd. is interested in exploring shale-gas blocks in the southern Romanian region of Oltenia.

Alexandru Patruti, head of the Bucharest-based Mineral Resources Agency, disclosed the information while speaking at an energy conference today in Bucharest.

Any company that has permits to explore oil and gas in the country may also explore resources of unconventional gas, Patruti said.

In July 2010, Chevron Corp submitted winning bids for three shale-gas exploration blocks in the south-eastern region of Dobrogea, totaling 2,700 square kilometers. The company also has exploration rights for a block in Barlad (Eastern Romania). MOL Group has also expressed an interest in searching for unconventional gas in the nation.

Sterling today announced that it had reached agreement with the Government of Romania on a package of issues that will resolve the notice of dispute filed on June 20th, 2011.

At a meeting with Ion Ariton, Minister of Economy, Commerce and Business Environment and the President of the National Agency of Mineral Resources (NAMR), an agreement was reached to grant assignments to Sterling’s designated partners, PetroVentures International Ltd. (20%) and Gas Plus (15%).

In addition, the Government will confirm that all of Sterling’s offshore licenses will now initially run to May 2014 with two further extension periods, each of three years in duration. The Company and NAMR now expect to finalize the administration of this resolution within 10 days.

“While we must still receive the final documentation on the agreements reached, we can confirm that meetings held today in Bucharest herald a new era in our future plans in Romania. The recent amendment to the Construction Permit Law, the granting of assignments and a resolution on our license periods will enable Sterling to resume work activities and investments in the Romanian Black Sea,” stated Mike Azancot, Sterling’s President and CEO.

In April, Sterling has declared Force Majeure on its Midia and Pelican Blocks in the Black Sea after it was unable to undertake operations for reasons it said were outside of its control.  Sterling claimed that lack of clarity on the applicable procedure and authority for issuance of construction permits constituted Force Majeure under its Concession Agreement.