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Zeta Petroleum to share well data with Chevron on Romanian gas project

Mon, 22 Apr 2013 13:40:00 +1000

Zeta Petroleum (ASX: ZTA) has signed an agreement with Chevron to share well data on the Suceava gas concession and the adjacent Barlad concession in Romania.

The 2,403 square kilometres Suceava gas concession is jointly owned by Zeta and Raffles Energy, while the 6,284 square kilometre Barlad concession is operated by Chevron.

Raffles operates the Suceava concession, that has the producing Climauti gas field that is currently producing approximately 15,500 cubic metres per day from Sarmatian sands from a depth of around 460 metres.

The agreement allows all the parties access to certain data on each concession including historic well and seismic data.

Zeta will be evaluating existing data for the Barlad concession to potentially identify conventional hydrocarbon targets in the area.

The Barlad concession is next to the Roman-Secuieni gas field operated by Romgaz, one of the largest commercial gas fields in the country.

Zeta Petroleum plc Managing Director Stephen West said, “The data sharing agreement with Chevron adds potential for additional prospectivity to the proven conventional play at Suceava, from which the Climauti gas field produces.

"We already believe there is the potential for up to 80Bcf (unrisked) of shallow conventional gas based on five leads and prospects at Suceava and look forward to receiving the findings of Chevron."

A feasibility study, is being undertaken to evaluate how to bring these two wells into production in 2013, and significantly boost current production from the concession.

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Zeta Petroleum to test Romanian oil appraisal well

Thu, 07 Mar 2013 11:48:00 +1100

Operator NIS Gazprom Neft’s decision to proceed with a complete and extensive testing program of the Jimbolia-100 appraisal well in Romania after intersecting hydrocarbons in multiple sands consistent with those in two previous discovery wells highlights its potential to flow oil.

Zeta Petroleum prepares to log Jimbolia oil appraisal well

Thu, 21 Feb 2013 14:10:00 +1100

Zeta Petroleum (ASX: ZTA) has drilled its Jimbolia-100 oil appraisal well in Romania to its target depth and is now preparing to carry out logging operations.

A decision will made on testing of the well once the logging results are received.

Jimbolia-100 is operated by Serbian oil and gas company NIS Gazprom Neft, which is majority owned by Russian gas giant Gazprom.

It was drilled to a depth of 2,590 metres to assess the Jimbolia Veche oil discovery that has two hydrocarbon bearing intervals and a current Contingent Resource of 1.72 million barrels of oil.

If successful, Jimbolia-100 will be completed as a production well.

Jimbolia

Previous drilling at Jimbolia by Petrom in 1983 identified the Pliocene VIII as an oil reservoir with a gas cap.

This was penetrated by two wells, the Jimbolia-1, which flowed at rates up to 120 barrels per day and tested at a sustained rate of 50 per day for six days and Jimbolia-6, which intersected an oil leg.

Zeta then acquired the Jimbolia concession in 2007 and has collated all existing well data and 2D seismic data on the field.

This has allowed it to complete a geological model and identify drill targets.

It then farmed out a 51% operating stake to NIS Gazprom Neft, the biggest one of the biggest vertically integrated oil companies in South East Europe, operating 53 oil and gas fields in Serbia.

Zeta retains a 39% stake in Jimbolia while the remaining 10% is held by local company Armax Gaz.

Zeta Petroleum and NIS Gazprom reach 2,404 metres in Romanian well

Thu, 14 Feb 2013 09:40:00 +1100

Zeta Petroleum (ASX:ZTA) and operator, NIS Gazprom Neft has drilled the Jimbolia-100 well in Romania to a depth of 2,404 metres.

Drilling commenced on 31 December 2012, in which Zeta has a 39 per cent interest, NIS a 51 per cent interest and Armax Gas Sa a 10 per cent interest.

Naftna Industrija Srbije AD is a Serbian oil and gas company controlled by OAO Gazprom Neft.

The well is targeting the Jimbolia Veche oil discovery which has two hydrocarbon bearing intervals and a current Pmean contingent resource of 1.72MMbbls.

Casing has been run and cemented to a depth of 2,391 metres.

Subject to confirmation of a successful cementing job, the well will be logged before drilling through the targeted oil reservoir and ahead to the target depth of 2,590 metres.

Target depth is expected to be reached within the next five days. A further 15 days is required to complete logging and testing operations.

If successful, Jimbolia-100 will be completed as a production well.

A further update will be provided once the well has reached its target depth.

Zeta Petroleum investigating potential to increase Romanian gas production

Thu, 24 Jan 2013 13:45:00 +1100

Zeta Petroleum is carrying out a Feasibility Study in developing two existing gas discovery wells in the Suceava Concession, Romania, that could potentially add US$75,000 per month to its revenues and payback development costs within 12 months.

Zeta Petroleum spuds Jimbolia oil appraisal well

Wed, 02 Jan 2013 10:00:00 +1100

Zeta Petroleum (ASX: ZTA) has spudded the Jimbolia-100 appraisal well targeting 1.27 million barrels of Contingent Oil on the Jimbolia oil concession in Romania.

“The spud of Jimbolia-100 is another significant milestone for Zeta which we have delivered on schedule and which is fully funded by our farm-in partner, NIS Gazprom Neft,” Zeta managing director Stephen West said.

“This well is the first new well in over 20 years to be drilled into the Jimbolia Veche discovery, which has the potential to hold Pmean contingent resources of 1.72 million barrels. I look forward to providing updates on the progress of Jimbolia-100 in due course.”

Serbia-based NIS Gazprom Neft is earning a 51% operating interest in the Jimbolia concession by fully funding the cost of the well.

Previous drilling by Petrom in 1983 identified the Pliocene VIII as an oil reservoir with a gas cap. This was penetrated by two wells, the Jimbolia-1, which flowed at rates up to 120 barrels per day and tested at a sustained rate of 50 per day for six days and Jimbolia-6, which intersected an oil leg.

Jimbolia-100 will be drilled to a target depth of 2,590 metres which is expected to be reached in 35 days. A further 15 days will be required to complete logging and testing operations. If successful, Jimbolia-100 will be completed as a production well.

Jimbolia

Zeta acquired the Jimbolia concession in 2007 and has collated all existing well data and 2D seismic data on the field.

This has allowed it to complete a geological model, identify drill targets and establish a contingent resource of 1.72 million barrels of oil.

Zeta had previously selected a drilling location for the Jimbolia 100 appraisal and development well and had started government and environmental permitting procedures for the well.

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Zeta Petroleum spuds Suceava gas exploration well

Thu, 15 Nov 2012 11:20:00 +1100

Zeta Petroleum (ASX: ZTA) and Raffles Energy have spudded an exploration well on their producing Suceava gas concession in Romania.

The Musenita-1 well targets one of the many leads and prospects in the concession that could hold unrisked resources of up to 80 billion cubic feet of gas.

Musenita-1 is located 921 metres from the producing Climauti-1 well, which currently flows 16,000 cubic metres (565,000 cubic feet) of gas per day.

It targets the shallow Sarmatian sandstone reservoirs that are analogous to the producing reservoir in Climauti-1.

Musenita-1 will be drilled to a total depth of 550 metres, which is expected to take about 10 days.

A further 10 days will be required to complete logging and testing operations.

If successful, Musenita will be completed as a production well and tied back to the Bilca Gas Processing Facility operated by Raffles through a 921 metre tie-back to the existing Climauti-1 pipeline.

Both the Bilca Gas Processing Facility and the existing Climauti-1 pipeline have excess capacity that can be utilised by production from the Musenita-1 well.

“The combination of existing production on the concession, shallow depths of between 400-1,000 metres resulting in lower drilling costs, multiple targets and established infrastructure and facilities, makes Suceava a highly prospective gas development project and I look forward to providing updates on Musenita’s progress in due course,” Zeta managing director Stephen West said.

The broad development strategy for the Suceava concession is to step wells out from the current producing Climauti Gas Field and connect them back via short pipelines in order to fast-track additional production.

Zeta and Raffles both hold a 50% stake in the Suceava gas concession

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Zeta Petroleum still pumped on Bobocu gas field

Thu, 08 Nov 2012 10:30:00 +1100

Zeta Petroleum (ASX: ZTA) remains confident about the prospectivity of the Bobocu gas field in Romania and is considering a sidetrack of the well it drilled in September 2012.

While the Bobocu 310 well did not produce commercial gas despite intersecting gas-bearing reservoir, downhole well logs and pressure data from the well have been incorporated into the field’s existing geological model.

This updated model has indicated the Bobocu structure is more complex than originally mapped and the well had intersected the structure slightly lower than prognosis though it did encounter all the
stratigraphic layers expected.

The data also indicated the Bobocu 310 well is in pressure communication with Bobocu 75, an old producing well located in an area that is likely to have significant gas remaining, and that it is located at the edge of a reservoir lobe and down-dip from the remaining gas in the area.

Further improvements to the accuracy of the Bobocu geological model are also expected once reprocessing of the 3D seismic acquired by Zeta in 2010 is completed.

This will be achieved by using seismic inversion to improve its resolution by utilising the shear sonic log acquired in the Bobocu 310 well.

Zeta expects the updated geological model to be available by year end, giving it a better understanding of the fluid distribution in the field and allowing it to better assess the viability of sidetracking Bobocu 310 well to target the remaining gas.

It also remains committed to bringing the field back into production by drilling new development wells and, where possible, undertaking workovers of existing wells.

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Zeta Petroleum completes option issue

Fri, 26 Oct 2012 10:00:00 +1100

Zeta Petroleum (ASX: ZTA) has closed its pro-rata non-renounceable rights issue of loyalty options with firm commitments received for around $160,000 of new share options.

Under the loyalty option issue, the Romania-focused company will now issue about 16 million new share options at $0.01 each. The loyalty options are exercisable at $0.30 on or before 15 July 2015.

Funds raised will be applied towards working capital. Zeta plans to now issue the shortfall of 17.4 million share options to existing and new investors.

All of the company’s directors took up their full entitlements for the loyalty options issue.

Zeta recently completed the farm out of the Jimbolia concession in Romania to Serbia-based NIS Gazprom Neft, which is majority owned by Russian gas giant Gazprom.

NIS now holds a 51% operating stake in the concession and will fund 100% of an appraisal well targeting the Jimbolia Veche discovery.

NIS Gazprom Neft plans to spud the Jimbolia 100 appraisal well in December 2012.

Jimbolia 100 targets the Jimbolia Veche discovery, which has two hydrocarbon bearing intervals and a current Pmean contingent oil resource of 1.72 million barrels of oil.

Previous drilling identified the Pliocene VIII, which is an oil reservoir with a gas cap. This was penetrated by two wells, Jimbolia-1, which flowed at rates up to 120 barrels per day and tested at a sustained rate of 50bpdfor 6 days and Jimbolia-6, which intersected an oil leg.

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Zeta Petroleum completes Jimbolia farm out to Gazprom subsidiary

Fri, 19 Oct 2012 12:00:00 +1100

Zeta Petroleum (ASX: ZTA) has completed the farm out of the Jimbolia concession in Romania to Serbia-based NIS Gazprom Neft, which is majority owned by Russian gas giant Gazprom.

NIS now holds a 51% operating stake in the concession and will fund 100% of an appraisal well targeting the Jimbolia Veche discovery.

The well targets contingent oil resources of 1.72 million barrels of oil and is expected to spud by the end of this quarter.

“The completion of our farm-out agreement with NIS for Jimbolia is a significant milestone which provides us with 100% financial backing from an oil and gas major to drill our first appraisal well in Romania,” Zeta managing director Stephen West said.

“The Jimbolia Veche discovery was made by Petrom in 1983 and previous drilling produced oil in testing at rates of between 50-100 barrels per day.”

Zeta retains a 39% stake in Jimbolia while the remaining 10% is held by local company Armax Gaz.

Zeta acquired the Jimbolia concession in 2007 and has collated all existing well data and 2D seismic data on the field.

This has allowed it to complete a geological model, identify drill targets and establish a contingent resource of 1.72 million barrels of oil.

Despite the flow of oil from Jimbolia Veche, the field was never produced.

Further potential may exist in the Jimbolia Vest discovery that flowed natural gas, carbon dioxide and condensate at rates of 196,000 cubic feet per day though it too was not produced.

NIS Gazprom Neft

NIS is one of the biggest vertically integrated oil companies in South East Europe, operating 53 oil and gas fields in Serbia and reporting a net profit of 40.6 billion Serbian Dinars (A$420.5 million) in 2011.

It produces about 1.5 million tonnes of oil equivalent (11.85 million barrels of oil equivalent) each year and also owns a retail network of more than 450 facilities including petrol stations, filing stations and crude oil storage facilities.

NIS had previously flagged it would invest US$588 million on exploration targets in Romania, Hungary and Bosnia-Herzegovina this year.

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Zeta Petroleum to drill two Romanian wells before year end

Thu, 27 Sep 2012 11:00:00 +1000

Zeta Petroleum (ASX: ZTA) is progressing its Romanian projects with the drilling of two wells in the fourth quarter and an updated geological model for Bobocu to be released in late October.

“We have a broad portfolio of oil & gas projects which all have the potential to positively impact our operational performance and production profile in the near term,” managing director Stephen West said.

“We have two wells planned and financed, targeting oil at Jimbolia and gas at Suceava, which will be drilled before the end of the year.”

West added the company was examining the Bobocu 310 well results to recalibrate its geological model in order to maximise the value of the previously producing Bobocu field.

Suceava

At the Raffles Energy operated Suceava Licence, the equal joint venture is planning to drill the low cost Musenita-1 well in mid-November that targets multiple shallow targets.

Musenita-1 can be quickly connected to existing gas processing and export infrastructure if successful and is expected to have a short payback period.

The broad development strategy for the Suceava concession is to step wells out from the current producing Climauti Gas Field and connect them back via short pipelines in order to fast-track additional production.

Climauti currently produces about 600,000 cubic feet of gas per day from the Sarmatian reservoirs at around 460 metres depth, revenue of about A$25,000 per month to Zeta.

Jimbolia

Over in Jimbolia, Serbia-based operator NIS Gazprom Neft plans to spud the Jimbolia 100 appraisal well in December 2012.

Jimbolia 100 targets the Jimbolia Veche discovery, which has two hydrocarbon bearing intervals and a current Pmean contingent oil resource of 1.72 million barrels of oil.

Previous drilling identified the Pliocene VIII, which is an oil reservoir with a gas cap. This was penetrated by two wells, Jimbolia-1, which flowed at rates up to 120 barrels per day and tested at a sustained rate of 50bpdfor 6 days and Jimbolia-6, which intersected an oil leg.

Bobocu

Results of the Bobocu 310 well are being incorporated into the Bobocu field’s geological model in order to plan the next well on the prospect.

The geological model is aimed at unlocking the value of the Bobocu Gas Field, which before the 310 well was drilled, had a Pmean contingent resource of 44 billion cubic feet (Bcf)of gas and a Pmean prospective resource of 14Bcf.

Although the initial testing of the 310 well did not yield commercial gas, the intention remains to bring this field back into production by drilling new development wells and, where possible, undertaking workovers of existing wells.

The new model will be applied to the existing data, which includes 75 square kilometres of 3D seismic, and from this the company will evaluate the remaining five drill ready targets already identified.

Other opportunities

Zeta continues to assess other onshore oil and gas opportunities within Romania and Eastern Europe that may complement and enhance the current portfolio.

This is particularly relevant with the increasing issues of energy security translating into countries being keen to develop their own energy sources.

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Zeta Petroleum launches option issue

Wed, 19 Sep 2012 08:50:00 +1000

Zeta Petroleum (ASX: ZTA) has launched a pro-rata non-renounceable rights issue of loyalty options to raise A$333,406 for working capital.

The Romania-focused company is offering one loyalty option for every four shares or CHESS Depositary Interests held at an issue price of $0.01 each. The loyalty options are exercisable at $0.30 on or before 15 July 2015.

Zeta is currently fully funded for the next stage of its exploration program with a cash position of about $4 million, as well as income from its producing Romanian asset.

The exploration program will include a well targeting oil on the Jimbolia concession, where Zeta has a 39% interest and is fully carried by farm-in partner Serbia-based NIS Gazprom Neft, which is majority owned by Russia’s Gazprom – the largest gas producer in the world.

NIS will fund 100% of the cost of the next exploration well and payment of contingent cash amounts to Zeta for its 51% operating stake.

Additionally, a well on the Suceava concession, targeting shallow gas, where Zeta has a 50% interest is also planned for the December quarter 2012, as well as additional evaluation work on the Bobocu Gas Field.

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Zeta Petroleum to update market on Romanian gas well results

Tue, 11 Sep 2012 12:50:00 +1000

Zeta Petroleum (ASX: ZTA) will soon release the results from testing of its first well at the Bobocu gas field in Romania and has entered into a trading halt.

Wireline logs had confirmed that gas shows were seen at multiple levels in the Bobocu 310 well and the decision was taken to carry out drill stem testing.

Zeta is seeking to bring Bobocu, which has existing contingent gas resource of 44 billion cubic feet, back into production by drilling new development wells using modern drilling techniques and, where possible, undertaking workovers of existing wells.

Bobocu 310 is located in a crestal location at the centre of the concession and is targeting two delta lobes in the Pontian interval that were identified on 3D seismic and confirmed by engineering data from historic wells.

The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Thursday 13th September.

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Zeta Petroleum starts testing of key Romanian gas well

Thu, 06 Sep 2012 11:20:00 +1000

Zeta Petroleum (ASX: ZTA) has started drill stem testing of the first well at its wholly owned Bobocu gas field in Romania.

Testing of the Bobocu 310 well, the first of six wells aimed at bringing the Bobocu gas field back into production, is expected to be completed within the next six days.

A further announcement will then be made when the testing is completed.

Wireline logs had confirmed that gas shows were seen at multiple levels in the Bobocu 310.

Bobocu has existing contingent gas resource of 44.36 billion cubic feet.

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Zeta Petroleum appoints non executive director

Tue, 04 Sep 2012 15:10:00 +1000

Zeta Petroleum (ASX: ZTA) has appointed Piers Lewis as a non-executive director.

Lewis has more than 15 years global corporate experience and is currently director and company Secretary of Talga Gold (ASX: TLG) and Stratos Resources (ASX: SAT).

He is also company secretary for Australia Minerals & Mining Group.

A qualified Chartered Accountant with Deloitte (Perth), he held previous senior management roles with Credit Suisse (London), Mizuho International and NAB Capital.

Demonstrating the progress being made by Zeta, the Romanian focused oil and gas explorer and developer has secured Serbia-based NIS Gazprom Neft as the new operating partner for the Jimbolia concession.

NIS, which is majority owned by Russia’s Gazprom – the largest gas producer in the world, will fund 100% of the cost of the next exploration well and payment of contingent cash amounts to Zeta for its 51% operating stake.

The exploration well is expected to spud later this year.

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Zeta Petroleum secures Serbia's NIS Gazprom Neft as new lead partner for Jimbolia

Fri, 31 Aug 2012 12:10:00 +1000

NIS Gazprom Neft, which is majority owned by Russia’s Gazprom, will take up a 51% operating stake in Zeta Petroleum’s Jimbolia concession in Romania that had previously tested oil and gas, in return for carrying the cost of an exploration well and cash payments to Zeta.

Zeta Petroleum confirms gas shows in Romanian well, testing to start soon

Wed, 22 Aug 2012 10:40:00 +1000

Zeta Petroleum (ASX: ZTA) has seen promising signs of gas in multiple levels with the first well targeted at bringing its wholly owned Bobocu gas field in Romania back into production.

The Bobocu 310 well is now being cased for drill stem testing with success likely to give the company the cash flow to develop other Eastern European projects.

This operation is expected to take about 10 days to complete.

Wireline logs had confirmed that gas shows were seen at multiple levels in the Bobocu 310, the first well in a six well program designed to bring the field back into production since it was acquired back in 2007.

This development program targets identified mean contingent gas resources of 44.8 billion cubic feet (Bcf) of gas, or 7.71 million barrels of oil equivalent (MMboe), along with mean prospective gas resource of 68.73Bcf or 11.82MMboe.

Bobocu 310 is expected to cost about $3.5 million while Zeta holds A$6.49 million in cash as of 30 June 2012.

Bobocu and the European gas market

Zeta holds 100% of the Bobocu gas field that was discovered by Romgaz in 1966 and reached peak production of 12.8 million cubic feet of gas per day (MMcf/d) in 1981 from nine wells.

Due to sand production, poor completion practices and a generally poor understanding of the field, the Bobocu field was shut in 1995 after producing a total of 33 billion cubic feet of gas over an 18 year life.

Zeta’s work has revealed that some of the delta wedge lobes at depths of between 2,500 metres and 2,700 metres that were previously produced still have remaining resources.

Potential has also been mapped in undrilled delta wedge lobes similar on the seismic to the previously produced lobes. Further exploration targets are also identified in the intervals above and below the Delta Wedge Sequence.

Any gas discovered will find ready buyers in both Romania and the broader European market, where there is a shortage of gas supply.

Upcoming deregulation of the Romanian gas market in 2013 will also bring the gas price into line with the European market, which is typically between $8 and $13 per thousand cubic feet (Mcf).

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Zeta Petroleum advances Bobocu 310 in Romania on schedule and budget

Wed, 08 Aug 2012 09:20:00 +1000

Zeta Petroleum (ASX: ZTA) is progressing drilling of the Bobocu 310 appraisal/development well in Romania with operations on schedule and budget.

The well is now drilling in an 8.5 inch hole at a depth in excess of 1,700 metres, having successfully set the first casing string at 850 metres.

The Bobocu 310 well, which was spud in late July, and the other five wells in the program are the result of Zeta’s work to bring the field back into production since it was acquired back in 2007.

The planned six well development program targets identified mean contingent gas resources of 44.8 billion cubic feet (Bcf) of gas, or 7.71 million barrels of oil equivalent (MMboe), along with mean prospective gas resource of 68.73Bcf or 11.82MMboe.

The well will be drilled to a target depth of 2,700 metres and is expected to take a further 14 days to be drilled to this depth.

It is then expected that an additional 10 days will be required to complete logging and testing operations.

Zeta has previously estimated budgeted costs for completion of Bobocu 310 of $3.5 million.

Progress to date has been achieved with over 6,000 man-hours worked and zero HSE incidents.

Bobocu and the European gas market

Zeta holds 100% of the Bobocu gas field that was discovered by Romgaz in 1966 and reached peak production of 12.8 million cubic feet of gas per day (MMcf/d) in 1981 from nine wells.

Due to sand production, poor completion practices and a generally poor understanding of the field, the Bobocu field was shut in 1995 after producing a total of 33 billion cubic feet of gas over an 18 year life.

Zeta’s work has revealed that some of the delta wedge lobes at depths of between 2,500 metres and 2,700 metres that were previously produced still have remaining resources.

Potential has also been mapped in undrilled delta wedge lobes similar on the seismic to the previously produced lobes. Further exploration targets are also identified in the intervals above and below the Delta Wedge Sequence.

Any gas discovered will find ready buyers in both Romania and the broader European market, where there is a shortage of gas supply.

Upcoming deregulation of the Romanian gas market in 2013 will also bring the gas price into line with the European market, which is typically between $8 and $13 per thousand cubic feet (Mcf).

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Zeta Petroleum adds cash flow with completion of Romanian gas field acquisition

Wed, 01 Aug 2012 09:20:00 +1000

Zeta Petroleum (ASX: ZTA) has added gas production and cash flow of about A$25,000 a month with the completion of its acquisition of Regal Petroleum Romania.

Regal Romania, a wholly owned subsidiary of Regal Petroleum (LON: RPT), holds a 50% working interest in the Suceava concession in Romania that currently produces 17,000 square metres (600,327 cubic feet) of gas from the Climauti gas field.

Production is sold to Wintershall, the largest oil and gas producer in Germany.

Zeta’s commitment under the Suceava concession agreement is to fund 50% of the costs of a 50 kilometres 2D seismic acquisition campaign, which was recently completed, and the drilling of one shallow exploration well.

Suceava offers upside potential

While production from Climauti is relatively modest, the Suceava concession offers both shallow conventional gas as well as unconventional gas potential.

Conventional gas potential of up to 80 billion cubic feet has been identified in 6 leads and prospects, at between 400 metres and 1,000 metres depth. Zeta also believes unconventional gas could be present in deeper Silurian shales.

Suceava covers 2,403 square kilometres, about 370 kilometres north of Bucharest, on the Moldovian platform.

The concession is contiguous with Chevron’s (NYSE: CVX) Barlad concession, where shale gas exploration is planned.

Raffles Energy Pte subsidiary Raffles Energy SRL is operator of the Suceava concession and holds the remaining 50% interest.

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Zeta Petroleum to benefit from Romanian gas market deregulation

Thu, 26 Jul 2012 14:30:00 +1000

Zeta Petroleum (ASX: ZTA) will see an improvement to the economics of its Romanian projects after the Government put in place legislation to deregulate its domestic gas market.

Under the new Energy and Gas Law No. 123/2012, regulated prices for end clients will be gradually eliminated with the changes taking effect for non-household clients from 1 December 2012 and from 1 July 2013 for household clients.

“Zeta has long been attracted to Romania given its favourable and stable fiscal regime, proven hydrocarbon system and long established oil and gas industry,” managing director Stephen West said.

“The announcement of the official conversion into Romanian legislation of the EC directive supports our strategy to invest in Romania as we expect domestic gas prices to commence converging with Western European prices from early 2013.”

Gas prices in Romania currently average about US$4.25 per thousand cubic feet though West had previously said that deregulation could send prices up to about US$10.50 per thousand cubic feet, more than doubling its future revenue.

Bobocu gas field

Zeta has started its six well drilling aimed at bringing the Bobocu gas field back into production with the spudding of the Bobocu 310 appraisal and development well earlier this week.

The program targets identified mean contingent gas resources of 44.8 billion cubic feet (Bcf) of gas, or 7.71 million barrels of oil equivalent (MMboe), along with mean prospective gas resource of 68.73Bcf or 11.82MMboe.

This is based on the company’s understanding of the geology and distribution of hydrocarbons across the field from the extensive technical studies, geological modelling and a 75 square kilometre 3D seismic survey that it carried out.

Additional potential that was identified in shallower and deeper horizons will be evaluated during this program.

Any gas discovered will find ready buyers in both Romania and the broader European market, where there is a shortage of gas supply.

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Zeta Petroleum starts highly anticipated Romanian gas drilling campaign

Tue, 24 Jul 2012 09:50:00 +1000

Zeta Petroleum (ASX:ZTA) has spudded the first of six wells aimed at bringing the Bobocu gas field in Romania back into production.

The Bobocu 310 appraisal and development well is located in a crestal location at the centre of the concession and is targeting two delta lobes in the Pontian interval that were identified using amplitude variations in the 3D seismic survey.

These lobes overlay and are estimated to hold best estimate in-place gas of over 25 billion cubic feet.

Bobocu 310 is expected to take 30 days to be drilled to a total depth of 2700 metres and a further 10 days to complete logging and testing operations. Budgeted costs for completion are estimated to be about $3.5 million.

Bobocu development program

The planned 6 well development program targets identified mean contingent gas resources of 44.8 billion cubic feet (Bcf) of gas, or 7.71 million barrels of oil equivalent (MMboe), along with mean prospective gas resource of 68.73Bcf or 11.82MMboe.

This is based on the company’s understanding of the geology and distribution of hydrocarbons across the field from the extensive technical studies, geological modelling and a 75 square kilometre 3D seismic survey that it carried out.

Additional potential that was identified in shallower and deeper horizons will be evaluated during this program.

Zeta holds 100% of the Bobocu gas field was discovered by Romgaz in 1966 and reached peak production of 12.8 million cubic feet of gas per day (MMcf/d) in 1981 from 9 wells.

Due to sand production, poor completion practices and a generally poor understanding of the field, the Bobocu field was shut in 1995 after producing a total of 33 billion cubic feet of gas over an 18 year life.

Zeta’s work has revealed that some of the delta wedge lobes at depths of between 2500 metres and 2700 metres that were previously produced still have remaining resources.

Potential has also been mapped in undrilled delta wedge lobes similar on the seismic to the previously produced lobes. Further exploration targets are also identified in the intervals above and below the Delta Wedge Sequence.

Any gas discovered will find ready buyers in both Romania and the broader European market, where there is a shortage of gas supply.

Upcoming deregulation of the Romanian gas market in 2013 will also bring the gas price into line with the European market, which is typically between $8 and $13 per thousand cubic feet (Mcf).

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Zeta Petroleum: Bobocu gas drilling campaign could deliver early production and cash flow

Mon, 02 Jul 2012 11:13:00 +1000

Early production and cash flow targeted by Zeta Petroleum’s 6 well drilling program on the Bobocu gas field in Romania.

Zeta Petroleum MD talks about exploration and gas production in Romania

Tue, 26 Jun 2012 15:30:00 +1000

Managing director of Zeta Petroleum (ASX: ZTA) Steve West talks to Proactive Investors on StockTube about the acquisition of a producing gas field in Romania as well as some interesting facts about operating in the country.

Zeta will acquire the sole asset of Regal Romania which has a 50% working interest in the Suceava concession in Romania.

The Suceava concession includes the Climauti gas field which is currently producing 17,000m3/day from Sarmatian reservoirs at around 460 metres depth, with the production being sold to Wintershall, the largest crude oil and natural gas producer in Germany. This modest existing production is expected to generate approximately $25,000 per month net revenue to Zeta and should yield approximately 2Bcf gross of recoverable gas reserves.

Click here to view StockTube Interview with Steve West MD of Zeta Petroleum

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Zeta Petroleum MD talks about oil and gas exploration in Romania

Tue, 26 Jun 2012 14:59:00 +1000

Zeta Petroleum (ASX: ZTA) is an oil and gas exploration and production company with a focus on Romania and Eastern Europe.

Zeta Petroleum non-executive director takes up initial interest

Mon, 18 Jun 2012 15:40:00 +1000

Zeta Petroleum’s (ASX: ZTA) new non-executive director Cameron Manifold has taken up a stake in the company as it progresses its Romanian gas interests.

Manifold is the founder and chief executive officer of AWT International, and joined the board of Zeta in early June.

He has now taken up 112,500 shares for $16,875 in an on market trade through the Manifold Family super fund account, in which he has a beneficial interest.

Zeta Petroleum hit the boards of the ASX on Wednesday May 23 2012 following a successful A$8.35 million initial public offering.

Funds from the IPO are being directed towards drilling at Zeta’s flagship Bobocu gas field in Romania, with the aim of producing gas by mid-2013.

Bobocu hosts contingent gas resources of 44.36 billion cubic feet and prospective resources of 14.09 billion cubic feet.

Zeta also has a 50% interest in the Suceava concession in Romania, which includes the producing Climauti gas field.

Climauti produces 17,000 cubic metres of gas per day from the Sarmatian reservoirs at about 460 metres depth.

Based on existing production, Zeta stands to gain about $25,000 per month in net revenue from Climauti, with about 2 billion cubic feet of recoverable gas reserves.

Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.

Zeta Petroleum: Romanian gas progress attracting investor attention, MD stake increases

Thu, 14 Jun 2012 13:40:00 +1000

Zeta Petroleum (ASX: ZTA) managing director Stephen West has increased his indirect interest in the company through a transaction by Cresthaven Investments.

Cresthaven spent $15,000 at about $0.147 per share to take up 102,500 shares in the newly minted company, in an on market trade.

West holds an indirect beneficial interest in Cresthaven.

Zeta Petroleum hit the boards of the ASX on Wednesday May 23 2012 following a successful A$8.35 million initial public offering.

Funds from the IPO will go towards drilling at the company’s flagship Bobocu gas field in Romania, with the aim of producing gas by the middle of 2013.

Bobocu hosts contingent gas resources of 44.36 billion cubic feet and prospective resources of 14.09 billion cubic feet.

Late last month, Zeta acquired a 50% interest in the producing Suceava concession in Romania.

This concession includes the Climauti gas field, which produces 17,000 cubic metres of gas per day from the Sarmatian reservoirs at about 460 metres depth.

Based on existing production, Zeta stands to gain about $25,000 per month in net revenue from Climauti, with about 2 billion cubic feet of recoverable gas reserves.

Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.

Zeta Petroleum appoints AWT chief executive Cameron Manifold as new director

Fri, 01 Jun 2012 11:30:00 +1000

Zeta Petroleum (ASX: ZTA) has appointed AWT International founder and chief executive officer Cameron Manifold as a non-executive director.

He replaces Michael Scott who resigned to take up full time employment with a major oil and gas company.

Manifold has worked both onshore and offshore in Australia, South East Asia, Africa and the United Kingdom and has complimentary broader skills in reservoir, petroleum and production engineering.

He also serves as a director of several private companies within Asia and is the Chairman of Whicher Range Energy.

AWT International is a leading independent well engineering consultancy providing innovative field development and refurbishment solutions to the global upstream oil and gas industry.

“We are extremely pleased that someone of Mr Manifold’s calibre has decided to join Zeta as a Non-Executive Director,” Zeta managing director Stephen West said.

“With his depth of drilling and production engineering experience complementing our existing technical team, we are very well placed for success on the upcoming drilling campaign on our flagship Bobocu gas field.”

The company plans to use proceeds from its successful A$8.35 million initial public offering to start drilling at the flagship onshore Bobocu gas field with the aim of producing gas by the middle of 2013.

Bobocu hosts contingent gas resources of 44.36 billion cubic feet and prospective resources of 14.09 billion cubic feet.

West also thanked Michael Scott for his help in moving the company from a private company to an ASX listed company.

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Zeta Petroleum to secure cash flow for Romanian oil and gas activities through acquisition

Thu, 31 May 2012 11:40:00 +1000

Zeta Petroleum (ASX: ZTA) is set to gain early cash flow through the acquisition of a 50% interest in a producing gas field in Romania.

The newly minted company has agreed to acquire Regal Petroleum Romania, a wholly owned subsidiary of Regal Petroleum (LON: RPT), which holds a 50% working interest in the Suceava concession in Romania.

This concession includes the Climauti gas field, which produces 17,000 cubic metres of gas per day from the Sarmatian reservoirs at about 460 metres depth.

Production from Climauti is sold to Germany’s largest crude oil and natural gas producer, Wintershall.

Based on existing production, Zeta stands to gain about $25,000 per month in net revenue from Climauti, with about 2 billion cubic feet of recoverable gas reserves.

While existing production from Climauti is modest, Zeta also stands to gain conventional and unconventional gas potential from other prospects within Suceava.

Conventional gas potential of up to 80 billion cubic feet has been identified in 6 leads and prospects, at between 400 metres and 1,000 metres depth. Zeta also believes unconventional gas could be present in deeper Silurian shales.

Suceava covers 2,403 square kilometres, about 370 kilometres north of Bucharest, on the Moldovian platform.

The concession is contiguous with Chevron’s (NYSE: CVX) Barlad concession, where shale gas exploration is planned.

Stephen West, managing director of Zeta Petroleum, said the acquisition will bring forward the company’s transition into production.

“By securing the acquisition of a 50% interest in the Suceava concession we have acquired cash-flow from production, added significant shallow conventional exploration to our portfolio and have the potential for unconventional shale gas in the future,” West said.

“We have now joined a very short and exclusive list of independent gas producers in Romania which will fast-track the attainment of a gas selling licence for the Company.”

Acquisition terms

Zeta has signed a sale and purchase agreement for the acquisition of 100% of the capital of Regal Petroleum Romania, for US$650,000 cash consideration.

Upon completion of the acquisition, Zeta will be responsible for funding 50% of the drilling costs for one shallow exploration well along with a recently completed 50 kilometre 2D seismic acquisition campaign.

These costs are expected to be EUR1 million (A$1.27 million).

Raffles Energy Pte subsidiary Raffles Energy SRL is operator of the Suceava concession and holds the remaining 50% interest.

Zeta hits the boards running

Zeta Petroleum hit the boards of the ASX on May 23, 2012 and has been working fast to advance its existing Romanian assets.

The company plans to use proceeds from the successful A$8.35 million initial public offering to start drilling at the flagship onshore Bobocu gas field with the aim of producing gas by the middle of 2013.

Bobocu hosts contingent gas resources of 44.36 billion cubic feet and prospective resources of 14.09 billion cubic feet.

Another drill ready asset in Zeta’s portfolio is the Jimbolia Oil Field, which hosts prospective resources of 1.72 million barrels.

In addition, Zeta has a 12.5% fully carried interest in the Padureni Gas Field, and a 100% interest in three prospecting permits that cover more than 6,000 square kilometres in known hydrocarbon prone areas in Romania.

The company has an aggressive growth strategy, aiming to expand into neighbouring countries in Eastern Europe.

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Zeta Petroleum aims to rapidly commercialise advanced Romanian gas assets

Wed, 23 May 2012 10:35:00 +1000

Freshly minted IPO Zeta Petroleum is set to fast track commercialisation of its advanced Romanian gas assets, providing a springboard for investors for value creation.

Zeta Petroleum admitted to the ASX with Romanian oil and gas assets

Mon, 21 May 2012 12:00:00 +1000

Zeta Petroleum (ASX: ZTA) has been admitted to the Official List of the ASX today, as it prepares to kick of drilling and other exploration work on its Romanian assets.

Zeta will hit the ASX boards at 12.30am AEST on Wednesday 23rd May 2012.

The company will use proceeds from its initial public offering used to start drilling at the onshore Bobocu gas field with the aim of producing gas by the middle of 2013.

This corresponds with the expected deregulation of Romanian gas market that would more than double current gas prices of about US$4.25 (A$4.27) per thousand cubic feet.

It plans to achieve this by drilling new development wells using modern drilling techniques and possibly carrying out workovers of existing wells.

Bobocu has contingent resources of 44.36 billion cubic feet (Bcf) and prospective resources of 14.09Bcf.

Zeta may also re-enter an existing well at Jimbolia if it is unable to find a farm in partner to drill an appraisal well at the oil field.

While the company had originally planned to raised A$8 million, the strong level of interest led to the issue of 41.7 million shares priced at A$0.20 each, for a total of A$8.35 million.

Each share includes a free attaching option exercisable at A$0.20 each.

Zeta is also offering a 1 for 4 loyalty option to all shareholders on the register after 3 months. These options will be exercisable for 3 years at A$0.30 each.

Bobocu

The Bobocu gas field is located 20 kilometres northeast of Buzau and 110km northeast of Bucharest.

It was discovered in 1966 with the discovery well testing gas at a flow rate of 2.5 million cubic feet per day (MMcfd) and the field put into production in 1977.

Peak production of 12.8MMcfd was reached in April 1981 from 9 wells though sand production, poor completion practices and a general poor understanding of the field, led to it being shut in 1995.

Zeta acquired the field in 2007 and has shot 75 square kilometres of new 3D seismic that led to a revised geological model that improved understanding of the geology and distribution of hydrocarbons across the field.

The seismic also identified additional prospectivity on the field in intervals both above and below the Delta Wedge sequence where previous wells had produced from.

Jimbolia

Jimbolia is located in the proven producing eastern part of the Pannonian Basin, about 40 kilometres east of Timisoara on the Romania’s border with Serbia.

The 23.9 square kilometre licence contains two discoveries, Jimbolia Veche and Jimbolia Vest that were made in 1983 by Petrom.

Zeta acquired the Jimbolia licence in 2007 and since then has collated all existing well data and 2D seismic data on the field to complete a geological model, identify drill targets and establish a contingent oil resource of 1.72MMbbl.

Jimbolia Veche contains the Jimbolia oil field that was intersected by two wells including Jimbolia-1, which flowed at rates of up to 120 barrels per day, as well as the Jimbolia gas field that was brought on stream from 1985 to 1998 and produced 2.89Bcf of gas from the Pliocene III gas reservoir.

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