LONDON, Jan. 18 -- Amromco Energy LLC, Dallas, will become operator of the Viperesti exploration block in Romania and acquire the petroleum rights under a preliminary agreement signed with current operator Toreador Resources Corp., Dallas.
In exchange Toreador will acquire a 10% overriding gross production interest. Amromco will seek an extension on the permit before the April 2009 deadline and drill a 1,500-m well on or before the beginning of 2011 or pay Toreador a nonperformance penalty.
The block covers 324,000 acres and is prospective in the Miocene and Oligocene age formations, ranging from 2,000-16,000 ft in depth.
Toreador has struck a deal with Lotus Petroleum to sell its Fauresti field for $1.25 million. This is a rehabilitation project on a 1,325 acre block that produces gas and natural gas liquids. Lotus will grant a 12.5% overriding net production interest to Toreador. "In addition, Lotus has agreed to assume Toreador's 30% working interest in the Moinesti exploration block by providing Toreador a 12.5% overriding net production interest from Lotus' working interest," Toreador said.
Moinesti is 450,000 gross acres and Stratum Energy Co. Ltd. plans to reenter a well and drill 2-3 wells to acquire a 70% interest and operatorship.
It will save $500,000/year in administration costs after it shuts its Romanian office.
Toreador's deals require the Romanian's government approval, which is expected to be received in the first quarter of 2009. All three transactions are effective from Dec. 31, 2008.
Contact Uchenna Izundu at email@example.com.