Zeta Petroleum (ASX: ZTA) has seen promising signs of gas in multiple levels with the first well targeted at bringing its wholly owned Bobocu gas field in Romania back into production.
The Bobocu 310 well is now being cased for drill stem testing with success likely to give the company the cash flow to develop other Eastern European projects.
This operation is expected to take about 10 days to complete.
Wireline logs had confirmed that gas shows were seen at multiple levels in the Bobocu 310, the first well in a six well program designed to bring the field back into production since it was acquired back in 2007.
This 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.
Bobocu 310 is expected to cost about $3.5 million while Zeta holds A$6.49 million in cash as of 30 June 2012.
Bobocu and the European gas market
Zeta holds 100% of the Bobocu gas field that 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 nine 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 2,500 metres and 2,700 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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