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Zeta Petroleum To Drill Two Romanian Wells Before Year End

Zeta Petroleum (ASX: ZTA) is progressing its Romanian projects with the drilling of two wells in the fourth quarter and an updated geological model for Bobocu to be released in late October.

"We have a broad portfolio of oil & gas projects which all have the potential to positively impact our operational performance and production profile in the near term," managing director Stephen West said.

"We have two wells planned and financed, targeting oil at Jimbolia and gas at Suceava, which will be drilled before the end of the year."

West added the company was examining the Bobocu 310 well results to recalibrate its geological model in order to maximise the value of the previously producing Bobocu field.

Suceava

At the Raffles Energy operated Suceava Licence, the equal joint venture is planning to drill the low cost Musenita-1 well in mid-November that targets multiple shallow targets.

Musenita-1 can be quickly connected to existing gas processing and export infrastructure if successful and is expected to have a short payback period.

The broad development strategy for the Suceava concession is to step wells out from the current producing Climauti Gas Field and connect them back via short pipelines in order to fast-track additional production.

Climauti currently produces about 600,000 cubic feet of gas per day from the Sarmatian reservoirs at around 460 metres depth, revenue of about A$25,000 per month to Zeta.

Jimbolia

Over in Jimbolia, Serbia-based operator NIS Gazprom Neft plans to spud the Jimbolia 100 appraisal well in December 2012.

Jimbolia 100 targets the Jimbolia Veche discovery, which has two hydrocarbon bearing intervals and a current Pmean contingent oil resource of 1.72 million barrels of oil.

Previous drilling identified the Pliocene VIII, which is an oil reservoir with a gas cap. This was penetrated by two wells, Jimbolia-1, which flowed at rates up to 120 barrels per day and tested at a sustained rate of 50bpdfor 6 days and Jimbolia-6, which intersected an oil leg.

Bobocu

Results of the Bobocu 310 well are being incorporated into the Bobocu field's geological model in order to plan the next well on the prospect.

The geological model is aimed at unlocking the value of the Bobocu Gas Field, which before the 310 well was drilled, had a Pmean contingent resource of 44 billion cubic feet (Bcf)of gas and a Pmean prospective resource of 14Bcf.

Although the initial testing of the 310 well did not yield commercial gas, the intention remains to bring this field back into production by drilling new development wells and, where possible, undertaking workovers of existing wells.

The new model will be applied to the existing data, which includes 75 square kilometres of 3D seismic, and from this the company will evaluate the remaining five drill ready targets already identified.

Other opportunities

Zeta continues to assess other onshore oil and gas opportunities within Romania and Eastern Europe that may complement and enhance the current portfolio.

This is particularly relevant with the increasing issues of energy security translating into countries being keen to develop their own energy sources.

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