Terra Nova Energy Ltd. is pleased to announce that it has entered into a Farmout Agreement ("Agreement") with Zeta Petroleum (Romania) S.R.L. ("Zeta Petroleum") to acquire up to an eighty percent (80%) participating interest in the Bobocu License, onshore Romania.
Terra Nova will be entitled to acquire an initial forty percent (40%) participating interest in the Bobocu Production License upon: (1) The drilling of one commitment side-track entering of an existing well ("well") on the License; and (2) Cash payments totaling USD $1,040,000, of which 40% of the cash payment will be paid on certain milestone events and 60% of the cash payments will be paid out of Terra Nova's entitlement to future production.
Terra Nova may acquire an additional forty percent (40%) participating interest in the Bobocu Production License by drilling one additional exploration well to a total depth of 2,800 meters and making an additional cash payment totaling USD $1,040,000, of which 50% of the cash payment will be paid on certain milestone events and 50% of the cash payment will be paid out of Terra Nova's entitlement to future production.
The obligations under the Agreement are conditional on, among other things, National Agency for Mineral Resources' unconditional written approval of the assignment of the participating interest to Terra Nova and the side-track well.
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Henry Aldorf, CEO of Terra Nova stated: "We are looking forward to working with our partner Zeta Petroleum to develop the Bobocu license in Romania, a member country of the European Union and the OECD. Romania, contains South Eastern Europe's most significant oil and gas reserves and possesses surplus refining capacity. The extensive existing infrastructure, the attractive prospective geology and its strategic location within the European energy markets all creates a robust environment for the Romanian petroleum industry. Romania is currently the largest natural gas producer in Eastern Europe."
The Bobocu gas field is located in the foreland basin of the Carpathians 150 km NE of Bucharest, Romania. The field was discovered by Romgaz in 1966, and produced from 1977 to June 1995, and again from December 2000 until November 2001.
Source: Terra Nova Energy Ltd.
Date: Sep 1, 2016