Zeta Petroleum (ASX: ZTA) has been admitted to the Official List of the ASX today, as it prepares to kick of drilling and other exploration work on its Romanian assets.
Zeta will hit the ASX boards at 12.30am AEST on Wednesday 23rd May 2012.
The company will use proceeds from its initial public offering used to start drilling at the onshore Bobocu gas field with the aim of producing gas by the middle of 2013.
This corresponds with the expected deregulation of Romanian gas market that would more than double current gas prices of about US$4.25 (A$4.27) per thousand cubic feet.
It plans to achieve this by drilling new development wells using modern drilling techniques and possibly carrying out workovers of existing wells.
Bobocu has contingent resources of 44.36 billion cubic feet (Bcf) and prospective resources of 14.09Bcf.
Zeta may also re-enter an existing well at Jimbolia if it is unable to find a farm in partner to drill an appraisal well at the oil field.
While the company had originally planned to raised A$8 million, the strong level of interest led to the issue of 41.7 million shares priced at A$0.20 each, for a total of A$8.35 million.
Each share includes a free attaching option exercisable at A$0.20 each.
Zeta is also offering a 1 for 4 loyalty option to all shareholders on the register after 3 months. These options will be exercisable for 3 years at A$0.30 each.
The Bobocu gas field is located 20 kilometres northeast of Buzau and 110km northeast of Bucharest.
It was discovered in 1966 with the discovery well testing gas at a flow rate of 2.5 million cubic feet per day (MMcfd) and the field put into production in 1977.
Peak production of 12.8MMcfd was reached in April 1981 from 9 wells though sand production, poor completion practices and a general poor understanding of the field, led to it being shut in 1995.
Zeta acquired the field in 2007 and has shot 75 square kilometres of new 3D seismic that led to a revised geological model that improved understanding of the geology and distribution of hydrocarbons across the field.
The seismic also identified additional prospectivity on the field in intervals both above and below the Delta Wedge sequence where previous wells had produced from.
Jimbolia is located in the proven producing eastern part of the Pannonian Basin, about 40 kilometres east of Timisoara on the Romania's border with Serbia.
The 23.9 square kilometre licence contains two discoveries, Jimbolia Veche and Jimbolia Vest that were made in 1983 by Petrom.
Zeta acquired the Jimbolia licence in 2007 and since then has collated all existing well data and 2D seismic data on the field to complete a geological model, identify drill targets and establish a contingent oil resource of 1.72MMbbl.
Jimbolia Veche contains the Jimbolia oil field that was intersected by two wells including Jimbolia-1, which flowed at rates of up to 120 barrels per day, as well as the Jimbolia gas field that was brought on stream from 1985 to 1998 and produced 2.89Bcf of gas from the Pliocene III gas reservoir.
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