Independent to start gas flow in Moldova

Moldova Area [33415 bytes]

A small independent operator hopes to start gas production this year in the eastern European republic of Moldova, which imports all oil and gas, mainly from Russia.

Redeco Ltd. LLC, Oklahoma City, is seeking commercial customers in the town of Baimaclia for gas from a planned 5 km sales pipeline from nearby Victorovca field. The company is affiliated with Redexco Ltd., Calgary, and Costilla Energy Inc., Midland, Tex.

Redeco's Victorovca 302 workover well in Cantemir County flowed 500 Mcfd of gas in December from 1,976-86 ft in the Miocene Sarmat formation. The well is in the eastern Carpathian basin.

Most wells in Victorovca field are 30-45 years old, but Redeco believes it could economically redrill the field. Victorovca field extends about 12 km east-west and 4 km north-south.

Moldova status

Moldova has proven potential but presently produces no oil or gas. Consultants have rated it of low interest to outside explorers because of perceived limited geologic prospects.

The Soviets carried out incomplete exploration prior to Tyumen discoveries in Russia in the 1960s. The republic became independent from Russia in 1991 and has a convertible currency, the leu (4.6 leu/$1), same currency as in Romania.

The country lies between Romania and Ukraine and entirely inland from the Black Sea.

Redexco and Costilla each hold 50% interest in an 8.3 million acre E&D concession that covers the entire republic. Parliament approved an initial exclusive oil and gas development concession for Redeco in 1995 (OGJ, July 3, 1995, p. 26).

The companies hold exploration for 1996-2006 and 20 year development rights conveyed field by field. Development rights have been conveyed for Valeni oil field, Victorovca gas field, and Baimaclia gas field.

Redeco has offices in Chisinau (formerly Kishi- nev), Baimaclia, and Valeni. It employs 35 Moldovans, as well as Moldovan contractors.

Present activities focus on the PreDobrogean depression, roughly the southern third of Moldova. The depression has yielded numerous shallow oil and gas shows, mostly in water wells.

About 75 stratigraphic tests drilled by the Moldovan Academy of Sciences in the 1960s revealed significant Mesozoic and Paleozoic structures and yielded numerous Jurassic, Carboniferous, Silurian, and Devonian hydrocarbon shows. Oil discoveries in the depression to the east in Ukraine (in Sarata and Belolesie) indicate that the upper Paleozoic has commercial potential, Redeco said.

Production to the west in Romania indicates commercial production possibilities in Mesozoic and Tertiary.

Meanwhile, Paleozoic oil shows in Cainari and a depleted gas field near Ungheni indicate that Moldova's central region has hydrocarbon potential.

Moldova is attracting foreign investment such as found in a private joint venture that recently started construction of an oil terminal at the country's Danube River port of Giurgiulesti.