Zeta, Cooper Enter Alliance for New Romanian Ventures
Zeta Petroleum entered into a funding arrangement and strategic alliance with Cooper Energy on July 30, 2010 for oil and gas projects in Romania.
The funding arrangement involves Cooper Energy making staged placements of up to US $15.8 million into the Company to fund the appraisal and development of the Bobocu Gas Field and ongoing working capital costs of the Company. In addition, Cooper Energy will provide technical assistance to the Company in relation to the Bobocu Gas Field.
The Bobocu Gas Field lies 110km north-east of Bucharest. Zeta Petroleum has recently acquired 75 km2 of 3D seismic over the field and the seismic is now being processed by Fugro in the United Kingdom. Following processing the seismic will be interpreted by the Company and a report on the potential gas available for development will be completed and submitted to the Romanian government. Subject to the results of the seismic interpretation, the Company is expecting to drill a gas appraisal well on the field in 2011.
The strategic alliance involves the Company and Cooper Energy agreeing to exclusively and mutually seek out and secure oil and gas projects in Romania, with the participation in new projects being in the form of a 50:50 unincorporated joint venture.
Stephen West, Executive Director, noted that "Zeta Petroleum is pleased to partner with Cooper Energy on the Bobocu Gas Field and new ventures in Romania. This strategic alliance enables us to fund the appraisal and development of our Bobocu Gas Field and
accelerate our growth plans in Romania."