Regal Romania, a wholly owned subsidiary of Regal Petroleum (LON: RPT), holds a 50% working interest in the Suceava concession in Romania that currently produces 17,000 square metres (600,327 cubic feet) of gas from the Climauti gas field.
Production is sold to Wintershall, the largest oil and gas producer in Germany.
Zeta's commitment under the Suceava concession agreement is to fund 50% of the costs of a 50 kilometres 2D seismic acquisition campaign, which was recently completed, and the drilling of one shallow exploration well.
Suceava offers upside potential
While production from Climauti is relatively modest, the Suceava concession offers both shallow conventional gas as well as unconventional gas potential.
Conventional gas potential of up to 80 billion cubic feet has been identified in 6 leads and prospects, at between 400 metres and 1,000 metres depth. Zeta also believes unconventional gas could be present in deeper Silurian shales.
Suceava covers 2,403 square kilometres, about 370 kilometres north of Bucharest, on the Moldovian platform.
The concession is contiguous with Chevron's (NYSE: CVX) Barlad concession, where shale gas exploration is planned.
Raffles Energy Pte subsidiary Raffles Energy SRL is operator of the Suceava concession and holds the remaining 50% interest.
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