Zeta Petroleum acquires 100 percent interest in proven oil concession in Romania

Newsroom 23/07/2013 | 10:12

Australia’s Zeta Petroleum, the oil and gas company, has secured a 100 percent interest in the previously producing Grivita Nord oil concessions from Celtique Romania.

Zeta will pay a maximum of USD 2.8 million for the concession if the oil output reaches 240,000 barrels, representing an acquisition price of USD 11.67 per barrel.

Stephen West, managing director of Zeta Petroleum, said: Grivita is Zeta’s fourth concession in Romania and, being located in a working hydrocarbon system, fits well with our investment criteria. 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.”

Zeta aims to drill a development well into a large unswept area of the concession and bring the field back into production. According to company estimates, this area contains 448,000 barrels of oil with a net present value (NPV) of USD 25.5 million.

The Grivita Nord field, in Eastern Romania, produced 763,457 barrels of oil between 1979 and 2005.