East West Petroleum Corp., Vancouver, BC, said seismic surveys are under way on the Tria (EX-2) block in Romania and will start shortly on the Baile Felix (EX-3), Periam (EX-7), and Biled (EX-8) blocks that have now been ratified by the Romanian government.
According to terms of the October 2011 farmout with Naftna Industrija Srbije jsc Novi Sad (NIS), NIS will earn an 85% interest by contributing 100% of the costs through the mandatory Phase 1 and optional Phase 2 exploration periods. East West will retain a 15% carried interest across all blocks through Phase 1 and Phase 2.
The minimum Phase 1 exploration mandatory program across all four blocks includes shooting and interpreting 2D and 3D seismic data and drilling three wells per block for 12 wells in total over the next 2 years. The four blocks cover a combined 1 million gross acres in the Pannonian basin.
The drilling will target conventional reservoirs using conventional technology, East West Petroleum said.