Terra Nova Energy Ltd has announced that it has entered into a Farmout Agreement with Zeta Petroleum S.R.L. to acquire up to an 80% participating interest in the Bobocu License, onshore Romania.
Terra Nova will be entitled to acquire an initial 40% participating interest in the Bobocu Production License.
Terra Nova may acquire an additional 40% participating interest in the Bobocu Production License by drilling one additional exploration well to a total depth of 2800 m and making an additional cash payment totaling US$1 040 000, of which 50% of the cash payment will be paid on certain milestone events and 50% of the cash payment will be paid out of Terra Nova's entitlement to future production.
The obligations under the Agreement are conditional on, among other things, National Agency for Mineral Resources' unconditional written approval of the assignment of the participating interest to Terra Nova and the side-track well.
Henry Aldorf, CEO of Terra Nova, commented: "We are looking forward to working with our partner Zeta Petroleum to develop the Bobocu license in Romania, a member country of the European Union and the OECD. Romania, contains South Eastern Europe's most significant oil and gas reserves and possesses surplus refining capacity. The extensive existing infrastructure, the attractive prospective geology and its strategic location within the European energy markets all creates a robust environment for the Romanian petroleum industry. Romania is currently the largest natural gas producer in Eastern Europe."
Edited from press release by Angharad Lock
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/06092016/terra-nova-energy-signs-farmout-agreement-with-zeta-petroleum-28428/