Australia's Beach Energy is expecting to receive a green light by mid-October from Romanian authorities on an offshore oil and gas farm-in agreement it entered with Scotland's Melrose Resources and South Africa's Petromar Resources.
A company spokesperson with Beach told Rigzone Wednesday that it expects the approval process to be smooth as the company has been in negotiations with the Romanian National Agency of Mineral Resources for "some time."
The farm-in agreement is for a 30 percent stake in the Est Cobalcescu exploration concession that lies next to the Exxon-Mobil deepwater block where a large discovery of gas – potentially 3 trillion cubic feet – was made in 2012. The block is sited in waters of less than 328 feet (100 meters) and it covers an area of 386 square miles (1,000 square kilometers).
Under the agreement, Beach will contribute $24.8 million to the JV for the proportionate share of past costs on the license and carry Melrose's share of the recently acquired 3D seismic survey. Beach has the option to fund a second exploration phase for a further three years at $9.6 million.
Commenting on the farm-in agreement, Beach's Managing Director Reg Nelson said in a statement that the JV provides the company a low cost entry to develop further business opportunities in Romania.
"We are looking forward to the results of the 3D seismic in the Black Sea, with six oil lead and 12 gas leads already identified from existing 2D seismic," Nelson added.
Following the farm-in agreement, Melrose Resources and Petromar Resource hold a 40 percent and 30 percent stake in the block respectively.
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