Zeta Petroleum to increase gas production at Suceava Concession in Romania

Zeta Petroleum has announced that its Climauti gas field, located in Suceava gas concession in Romania, is currently producing at 15,500m³/day from Sarmatian sands, at a depth of about 460m.

The company has a 50% interest in Suceava, with the other 50% owned by the operator, Raffles Energy.

With an area of about 2,403km², the Suceava gas concession is located on the Moldovian platform about 370km north of Bucharest and adjacent to the Chevron-owned Barlad concession.

The concession has about 80Bcf unrisked shallow conventional gas on five leads and prospects at depths of between 400m and 1,000m.

Zeta and Raffles intends to conduct a feasibility study on the two existing gas discovery wells, SE-1 and the Dornesti Sud-1, to increase its production in 2013.

First drilled in 2005, SE-1 has a stable rate of 25,500m³/day, while the Dornesti Sud-1 drilled in 2007, produced 24,000m³/day.

Zeta Petroleum managing director Stephen West said that the two discovery wells on Suceava concession are expected to increase the net revenue of the company by the end of 2013.

"We anticipate the two wells will recover their costs within 12 months, freeing up capital and generating revenues that can be reinvested elsewhere across our portfolio of assets.

"This includes our previously producing 100% owned Bobocu licence and a 39% interest in the Jimbolia concession where NIS Gazprom Neft is currently drilling the Jimbolia100 well into the Veche discovery, which has the potential to hold Pmean contingent resources of 1.72MMbbls," said West.

At an investment of about €2m, Zeta intends to construct conventional facilities, a pipeline from the two wells to an existing main pipeline, as well as use gas-to-power technology and to improve the production at the two wells.

Based on the test flow rates, the company is expecting $75,000 of additional revenue per month from the two wells, which will increase the company’s revenue to $100,000 per month.