Cooper Subsidiary Enters Farm-In Agreement for Romania Stake

- Cooper Subsidiary Enters Farm-In Agreement for Romania Stake

Friday, August 26, 2011
Cooper Energy Ltd.

Cooper announced that its wholly owned subsidiary, CE Bobocu Pty Ltd (CE Bobocu), has entered into a staged farm-in agreement with Zeta Petroleum (Romania) SRL (Zeta), a wholly owned subsidiary of Zeta Petroleum Limited (UK) (Zeta Petroleum), to earn up to a 50% interest in the Bobocu Gas Field on-shore Romania (Farm-in Agreement).

The Bobocu Gas Field is described in Cooper Energy's announcement of August 2, 2010.

The Farm-in Agreement replaces the Share Subscription Agreement and Joint Study and Bidding Agreement between Cooper Energy and Zeta Petroleum announced by Cooper Energy on August 2, 2010.

Subject to the satisfaction of certain conditions to the proposed acquisition by Key Petroleum Limited (Key) of all of the shares in Zeta Petroleum, the existing shareholding of Cooper Energy in Zeta Petroleum will be exchanged for Key shares.

The Farm-in Agreement is conditional on various matters, including:

• Implementation of the Key Proposal.
• Formal approval of the arrangement by the Cooper Energy and CE Bobocu boards of directors.

The drilling of the first well in the Bobocu Gas Field under the Farm-in Agreement is conditional on various matters, including:

• Key / Zeta Petroleum raising US $4 million to be made exclusively available for the purposes of the Bobocu Gas Field first well program.
• Zeta depositing US $2.24 million (of the US $4 million raised) in an escrow account.

Under the Farm-in Agreement, CE Bobocu will contribute farm-in costs up to a cap of US $2.24 million towards the first well in the Bobocu Gas Field.

All operations in relation to the first well will be operated by Zeta.

Following completion of the first well, CE Bobocu may elect to withdraw from the farm-in or to proceed.

If CE Bobocu elects to withdraw from the farm-in, CE Bobocu will be reimbursed from the escrow account all of CE Bobocu's expenditure on the first well.

If CE Bobocu elects to proceed, it will acquire (subject to governmental approvals and at no further cost) a 20% interest in the Bobocu Gas Field and have the right to earn up to a 50% interest in the Bobocu Gas Field.

CE Bobocu can surrender its right to earn in at any stage and will be entitled to retain the interest earned to that date. CE Bobocu will thereafter only be obliged to contribute its participating interest share of costs in respect of any further work on the Bobocu Gas Field.
Should it elect to proceed to each stage, CE Bobocu's financial obligations in relation to these subsequent programmes (in respect of which CE Bobocu will be the operator) are as follows:

Drilling of additional well	$1.8MM, plus 30% of costs thereafter	To earn an aggregate 30% interest
Design of plant	$2MM, plus 30% of costs thereafter	To earn an aggregate 40% interest
Construction of plant	$7.4MM, plus 30% of costs thereafter	To earn an aggregate 50% interest

Steve Twartz, Cooper Energy Exploration Manager, commented, "This revised arrangement provides CE Bobocu an option in the evaluation of the Bobocu Gas Field. Should the first well be successful, CE Bobocu will have preserved its risk managed options to earn further interests in the Bobocu Gas Field. Alternatively, should the first well not be successful, CE Bobocu can withdraw and it will have incurred no costs in respect of the first well."

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Europa Charges Ahead in Romania

- Europa Charges Ahead in Romania

Wednesday, July 20, 2011
Europa O&G Holdings plc

Europa provided an update on planned operations in Romania for the coming 6 months.

Europa has received both drilling approval and an extension to the license from the Romanian authorities in order to undertake the deepening of the Barchiz-1 exploration well, situated in the EPI-3 Brates Concession (Europa 100%). The deepening of the well is planned to test the exploration target thought to lie beneath the current 1,450m depth of the well.

Aurelian Oil & Gas, the Operator of the Brodina Concession (Europa 28.75%) in northern Romania, has advised partners that the Voitinel gas discovery appraisal well is due to spud on or around October 1, 2011. Subject to the results of this well, a further well is anticipated to be drilled to test the upside to the play in early 2012.

The 2011 seismic program in Romania is underway, with the EIII-3 Cuejdiu area (Europa 17.5%) acquisition over 70% complete. The EIII-1 Brodina program will follow on from this survey. Both of these seismic programs are concentrating on the underexplored thrustbelt oil play.

Managing Director Paul Barrett said, "these Romanian projects are coming together to create a significant amount of activity for the remainder of 2011 and we hope to exit the year with greater reserves and contingent resources."

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Petrom Announces Potential Significant Gas Find in NW Romania

- Petrom Announces Potential Significant Gas Find in NW Romania

Thursday, July 07, 2011
Dow Jones Newswires
BUCHAREST

Romania's dominant oil company OMV Petrom said drilling success at its 4539 Totea exploration well in the southwestern region of Oltenia, in what could be the "most important onshore gas discovery in the last six years," news agency Mediafax reported.

The 4539 Totea well was drilled following a recent 3D seismic exploration program. Three successful production tests were carried out, with a maximum stabilized production rate of around 3,100 barrels of oil equivalent/day gas and associated condensate, Petrom said in a statement.

"I am happy to announce this success which might represent the most important onshore gas discovery in Romania during the last six years. The results obtained during tests confirm the reservoir's potential as well as our expectations from the Oltenia region where we directed major investments," said Johann Pleininger, member of the Petrom Executive Board, responsible for Exploration and Production.

Petrom said it will start an appraisal program to determine the size of the accumulation, which is located in an area with a high geological complexity. Experimental production on well 4539 Totea is estimated to start by year-end, once the well is linked to the nearby gas pipeline infrastructure.

Petrom is Romania's largest vertically integrated oil company. Austrian OMV owns 51% of the company's shares, while Romanian Economy Ministry and regional investment fund Fondul Proprietatea hold 20.64% and 20.11% in Petrom, respectively. The reminder 8.24% stake is traded on the Bucharest bourse.

Copyright (c) 2011 Dow Jones & Company, Inc.

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East West Petroleum Enters MOU to Develop Romania Blocks

- East West Petroleum Enters MOU to Develop Romania Blocks

Wednesday, May 25, 2011
East West Petroleum Corp.

East West Petroleum and Naftna Industrija Srbije j.s.c. Novi Sad ("NIS") announced the final stage of conclusion of agreements for upstream cooperation which is to rapidly advance the development of its four Romanian onshore blocks EX-2 (Tria), EX-3 (Baile Felix), EX-7 (Periam) and EX-8 (Biled). The joint exploration programs planned will include the collection and processing of approximately 900 km of 2D and 600 sq km of 3D seismic data with a minimum of 12 wells to be drilled on the four blocks in Romania. The terms of the agreement are: NIS will fully fund all environmental work, 2D and 3D seismic acquisition and processing, and the drilling of 12 wells, to earn an 85% participation interest. NIS will also refund 100% of EWP's sunk costs which total C$525,000 and EWP will retain a 15% carried interest to commercial production on all four blocks.

In an earlier agreement the Company signed Concession Agreements for four onshore exploration blocks EX-2 (Tria) EX-3 (Baile Felix), EX-7 (Periam) and EX-8 (Biled) with the Romanian National Agency of Mineral Resources.

The new petroleum licenses are located in the western region of Romania within the prolific Pannonian Basin. The blocks have a combined area of approximately 1,000,000 acres. The blocks, which contain multiple exploration targets, lie within a major producing region of western Romania. The blocks have been only moderately explored, with previous exploration on the acreage generally limited to shallow structural traps. The Company has identified a number of structural and stratigraphic leads in the deeper section and plans to focus its exploration activities on the conventional oil and gas potential in addition to unconventional shale gas potential.

EWP and NIS plan to cooperate extensively to explore for and produce oil and gas from the four concession areas. Both conventional and unconventional resource potential has been identified on the acreage, which is situated close to numerous oil and gas fields. The joint work programs planned will include the acquisition and processing of approximately 900 km of 2D and 600 sq km of 3D seismic data during the first two years of operations. The new seismic data will be used to high-grade a number of prospective conventional oil and gas leads already identified on the acreage, to further study the unconventional shale potential and select drilling sites. Under the terms of the agreement East West will retain a 15% carried interest through Phase 1 (compulsory) and Phase 2 (optional) exploration periods as well as a carried interest on any discovery through to the declaration of commerciality. EWP will retain a 15% share of all production realized from the four concessions.

NIS is a leading explorer in this sector of the Pannonian Basin. NIS is currently carrying out extensive E&P operation in the Vojvodina region of northern Serbia, immediately adjacent to the Romanian Periam and Biled Concessions. NIS's operational capabilities and knowledge of regional geology are expected to contribute significantly to the success of the Romanian exploration programs.

The exploration programs are subject to final ratification of the Concession Agreements by the Government. The farmout to NIS will be subject to further agreements and approval of NAMR, which is expected to take place soon after the Government of Romanian ratifies the Concessions.

"The cooperation agreement with East West will allow NIS to expand its presence outside Serbia and to implement NIS's strategy of becoming an active player in the Balkan energy market. Participation of NIS in the project as operator will allow us to further our experience in the region and to apply innovative technologies for developing conventional and unconventional resources," commented Kiril Kravchenko, NIS Chairman of the Management Board.

Denis Sugaipov, the COO of NIS Company said, "The deal with East West Petroleum has several operational synergies for both companies and benefits for the Romanian energy sector. NIS's geological knowledge of Pannonian basin and its success in development can be applied to an area which is analogous to the Serbian North Banat region. In addition, EWP can contribute its technical expertise in unconventional resources. I hope that this deal will show results in the near future and contribute to the development of the Romanian energy sector, enabling the sustainable development of the entire region."

David Sidoo, Chairman of East West commented, "These agreements are the culmination of many months of hard work and we are confident that in Naftna Industrija Srbije, a subsidiary of Gazprom Neft, we have sourced a key and strategic partner, with substantial operating experience and the necessary financial and operating capabilities which can be applied to the Romanian concessions and can very quickly advance with the development of the Romanian concessions."

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MOL to Extend Upstream Portfolio to Romania

MOL to Extend Upstream Portfolio to Romania

Wednesday, April 20, 2011
MOL

MOL has signed Concession Agreements with the Romanian National Agency for Mineral Resources for three exploration blocks. As announced on July 5, 2010, EX-1 (Voivozi), EX-5 (Adea) and EX-6 (Curtici) were awarded at the 10th Licensing Round to the consortium of MOL and Expert Petroleum. MOL is the operator of the projects, with 70% participating interest in the blocks, while Expert Petroleum holds the remaining 30%.

The blocks have a combined area of 3,434 square km and are located in the Pannonian basin, next to the Hungarian border. The exploration period is divided to a three-year initial term and an optional three-year phase. The initial work program includes 2D and 3D seismic measurements to be followed by drillings. Besides the good oil and gas potential, some of the blocks have unconventional potential as well.

The agreements are subject to the approval of the Romanian Government.

Zoltán Áldott, Executive Vice President of Exploration and Production Division commented, "We are pleased to extend our international upstream portfolio to Romania, where we have already been present as an important downstream player. We believe that we can benefit from our experience in the exploration of the Pannonian basin gathered during many decades and we look forward to commence the work as soon as practicable."

Szabolcs I. Ferencz, MOL Romania CEO added, "MOL Group has long term investment plans for Romania. Deploying upstream projects in Romania match perfectly with developing our filling stations network and logistics facilities."