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Zeta Petroleum Starts Highly Anticipated Romanian Gas Drilling Campaign

Zeta Petroleum (ASX:ZTA) has spudded the first of six wells aimed at bringing the Bobocu gas field in Romania back into production.

The Bobocu 310 appraisal and development well is located in a crestal location at the centre of the concession and is targeting two delta lobes in the Pontian interval that were identified using amplitude variations in the 3D seismic survey.

These lobes overlay and are estimated to hold best estimate in-place gas of over 25 billion cubic feet.

Bobocu 310 is expected to take 30 days to be drilled to a total depth of 2700 metres and a further 10 days to complete logging and testing operations. Budgeted costs for completion are estimated to be about $3.5 million.

Bobocu development program

The planned 6 well development program targets identified mean contingent gas resources of 44.8 billion cubic feet (Bcf) of gas, or 7.71 million barrels of oil equivalent (MMboe), along with mean prospective gas resource of 68.73Bcf or 11.82MMboe.

This is based on the company's understanding of the geology and distribution of hydrocarbons across the field from the extensive technical studies, geological modelling and a 75 square kilometre 3D seismic survey that it carried out.

Additional potential that was identified in shallower and deeper horizons will be evaluated during this program.

Zeta holds 100% of the Bobocu gas field was discovered by Romgaz in 1966 and reached peak production of 12.8 million cubic feet of gas per day (MMcf/d) in 1981 from 9 wells.

Due to sand production, poor completion practices and a generally poor understanding of the field, the Bobocu field was shut in 1995 after producing a total of 33 billion cubic feet of gas over an 18 year life.

Zeta's work has revealed that some of the delta wedge lobes at depths of between 2500 metres and 2700 metres that were previously produced still have remaining resources.

Potential has also been mapped in undrilled delta wedge lobes similar on the seismic to the previously produced lobes. Further exploration targets are also identified in the intervals above and below the Delta Wedge Sequence.

Any gas discovered will find ready buyers in both Romania and the broader European market, where there is a shortage of gas supply.

Upcoming deregulation of the Romanian gas market in 2013 will also bring the gas price into line with the European market, which is typically between $8 and $13 per thousand cubic feet (Mcf).

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