Regal Receives Extension of Romania License

Regal has obtained approval from the Government of Romania to extend its rights as the legal holder of the petroleum exploration, development and production rights in relation to the Barlad Block EV-2 (100% working interest and operator, total area of 6,284 km2 located in north east Romania). These rights have been granted under the terms of the concession agreement originally signed in January 2004 between the National Agency for Mineral Resources and Regal and subsequently extended by a new license extension agreement dated September 21, 2010.

As a result of this approval, the license has been extended by 2 ½ years from September 1, 2010 until March 1, 2013 based on a new minimum work program commitment, valued at US $5.1 million, comprising:

  • Seismic data acquisition and processing: 200 km 2D
  • Data interpretation and correlation and other integration studies
  • Drilling of one well to 2500 m
  • Technology transfer fund contribution

Under the terms of this latest agreement, Regal has the right, following the accomplishment of the above work program, to request a further 2 ½ year extension with a further minimum exploration program, to be agreed.