Zeta Petroleum Completes Farm-Out with NIS Gazprom
Zeta Petroleum has completed a farm-out agreement on the Jimbolia concession. signed on 31 August 2012 with NIS Gazprom Neft.
Under the terms of the FOA, Zeta assigned a 51% working interest in the Company’s Jimbolia Concession in return for NIS Gazprom Neft funding 100% of an appraisal well targeting the Jimbolia Veche discovery.
Drilling commenced at the Jimbolia-100 well operated by NIS Gazprom Neft on 31 December 2012, targeting a depth of 2,590 meter, which is expected to be reached in mid-February 2013. A further 15 days will be required to complete logging and testing operations.
The Jimbolia Concession is located in the proven and producing eastern part of the Pannonian Basin consists of two discoveries, Jimbolia Veche and Jimbolia Zeta holds a 39% in Jimbolia, with NIS Gazprom Neft (as Operator) 51% Armax Gaz SA 10%.
Suceava Concession/Climauti Gas Field.
In updating operations at the Climauti gas field, Zeta reported stable production with approximately 15,500 cubic metres per day (m3/day).
A feasibility study will commence on bringing two existing gas discovery wells on Suceava into production in 2013, which would potentially significantly increase Zeta’s net production. 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.
The 2,403 sq km Suceava 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. Zeta and Raffles Energy (operator) each hold a 50% interest in Suceava
Bobocu
Zeta plans, subject to finance, to sidetrack a well from the existing Bobocu-310 well location. Although the initial testing of the Bobocu 310 well did not yield commercial gas, the company intends to bring this field back into production by initially drilling a sidetrack well and then new development wells.
It is estimated that the sidetrack well operation will take approximately 20 days to complete and will cost in the region of US$1.5 million. The Bobocu Gas Field Bobocu previously produced from 1977 until it was abandoned prematurely in 1995 and is located to the north of the Buzau valley, approximately 20km northeast of Buzau and 110km northeast of Bucharest. Zeta holds a 100# interet in Bobocu.