Grove will fund 80% of the first well, 60% of a 140 kilometer 2D seismic program and 50% of a second well, with the promoted percentages based on AFE costs, in order to earn its 40% interest. The agreement is subject to the approval of the National Agency of Mineral Resources of Romania.
The first well, named Cetatuia, for which drilling tenders have been received, is planned to test a multi-target prospect on the western edge of the Bailesti Depression. The primary target reservoirs are in the Tertiary and Triassic sections with additional possible potential in the Cretaceous and Jurassic formations. The prospect is analogous to producing fields on the eastern edge of the depression where all target reservoirs are productive.
Detailed studies are underway over the rest of this large 1.5 million acre Concession where initial technical work using existing available information has identified many leads throughout the block. This evaluation will be completed in time to enable follow up seismic and drilling activity during 2005, after integration of the results of the first well.
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