22/07/2013 - 11:57

Zeta acquires Romanian oilfield

22/07/2013 - 11:57

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Zeta acquires Romanian oilfield

Perth-based oil and gas play Zeta Petroleum has acquired a block of highly-prospective oil acreage in Romania for up to $US2.8 million.

Zeta announced today it had acquired a 100 per cent stake in the Grivita Nord oil concession, under a sale and purchase agreement with the concession's vendors, Romania's Celtique Energe Petroleum.

The concession has previously produced 763,457 barrels of oil from two separate wells.

Reserves at the Southern well of the oilfield are estimated at 448,000 barrels of oil with a net project value of around $US25.5 million.

Zeta said its consideration payable for the acquisition would be back-ended and based on future commercial success of the asset.

The maximum amount payable would be $US2.8 million, if Zeta produces 240,000 barrels of oil from the field.

Managing director Stephen West said the Grivita field was the company's fourth concession in Romania.

"As with our three existing concessions, hydrocarbons have previously been produced from the concession and new technical data indicates material reserves remain in place on the Southern structure," Mr West said in a statement.

"We therefore view Grivita as a development rather than an exploration play and subject to finance we intend to drill a well to bring the concession back into production."

At 11:30PM, WST, Zeta Petroleum shares were steady at 0.9 cents.

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