Gazprom Neft's Serbian Unit To Drill Oil Blocks In W Romania

05.25.2011 By Andrei Cîrchelan

Canadian East West Petroleum (EWP), which owns oil drilling rights to four blocks in western Romania, on Wednesday said it has contracted Serbian Naftna Industrija Srbijefor, or NIS, for the exploration and drilling works planned.

NIS, owned by Gazprom Neft, will drill at least 12 wells in the Tria, Baile Felix, Periam and Biled blocks.

"The joint exploration programs planned will include the collection and processing of approximately 900 km of 2D and 600 sq km of 3D seismic data with a minimum of 12 wells to be drilled on the four blocks in Romania," EWP said in a news release.

In addition, NIS will refund 100% of EWP's sunk costs, which total CAD525,000 (EUR381,000) and EWP will retain a 15% carried interest to commercial production on all four blocks.

The concession agreements concluded for the four blocks still require the approval of the local government and the farmout deal signed between the two companies will require the approval of Romania's mineral resources watchdog ANRM, EWP said.