Rohoelaufsuchungsgesellschaft (RAG), an Austrian private company that has been exploring for and producing oil and natural gas in Central Europe since its foundation in 1935, will make an upfront payment to ADX and will have the right to earn a 50% interest in Parta.
This can be achieved by a payment in lieu of past costs and a payment of a promoted share of future costs prior to the start of seismic operations.
ADX is required to shoot 100 square kilometres of new 3D seismic and 100 kilometres of new 2D seismic as well as drilling 3 exploration wells.
The company has already secured €3.1 million for the seismic work with a view to drilling exploration wells as soon as possible.
ADX added the deal positioned it as the operator of a strong joint venture with a capable partner in Parta. It also retains a 100% interest over 8 prospecting permits.
RAG has extensive industry experience, technological expertise and highly specialised knowledge. It is also one of the leading underground natural gas storage operators in Europe supplying both national and international customers.
The 1,221 square kilometre Parta concession contains 40 identified oil and gas leads that can be evaluated with low cost seismic and drilling programs.
While several oil and gas fields with total discovered proved and probable reserves of 12MMbble of oil and 50Bcf of gas have been made in the block since the late 1960s, it is still considered to be underexplored and lacks any modern 2D and 3D seismic data.
Geotechnical studies carried out by ADX have identified two independent fairways within the migration pathway of the MAKO source kitchen.
The MAKO trough contains the Algyo Field in Hungary which has historical production of 2.6 trillion cubic feet of gas and 225MMbbl of oil.
Romania has a favourable tax and royalty regime and has easy access to local infrastructure and European markets.
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