Sterling Farms-Out 50% WI in Onshore Romania Block
Sterling Resources Ltd. has reached an agreement in principle with TransAtlantic Petroleum Corporation to farm-out a 50% working interest in the large (1,500,000 acre) South Craiova Block E III-7
located onshore Romania. The agreement is subject to the completion of formal documentation and approval by the Romanian National Agency for Mineral Resources.
This agreement follows a recently announced agreement between Sterling and Grove Energy Romania, which will see Sterling re-acquire the full 100% interest in the license.
Following the farm-out, Sterling will retain a 50% working interest and operatorship through Midia Resources SRL, a wholly owned Romanian subsidiary of Sterling.
In return for the working interest of 50%, TransAtlantic has agreed to conduct a work program of three exploratory wells, covering Sterling's costs through drilling and testing. TransAtlantic will undertake the work program using a proprietary drilling rig and crew, with the first well expected to spud before the end of 2008.
"With a return to a 100% working interest in the Craiova area, this agreement with TransAtlantic allows us to initiate exploration drilling on the license, targeting shallow gas potential in the Goshawk area of Craiova at no
immediate cost to Sterling," stated Stephen Birrell, Sterling's Vice President of Operations in Romania.
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Company: TransAtlantic Petroleum more info
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