East West Petroleum (EWP) and Naftna Industrija Srbije (NIS) have entered into an agreement for the development of four onshore blocks - EX-2, EX-3, EX-7 and EX-8 - in Romania.
The joint exploration programme includes the collection and processing of 900km of 2D seismic data and 600km² of 3D seismic data, with a minimum of 12 wells to be drilled on the four blocks.
Under the terms of agreement NIS will fund all environmental work, 2D and 3D seismic acquisition and processing, as well as the drilling of 12 wells to earn an 85% participation interest in the project.
NIS will also refund 100% of EWP's sunk costs and EWP will retain a 15% carried interest to commercial production on all four blocks.
The blocks cover a total area of 4,047km², containing multiple exploration targets within a major producing region of western Romania.