Romania

By OGJ editors
HOUSTON, July 6 -- Romania has awarded Melrose Resources PLC, Edinburgh, exploration blocks EX-27 and 28 in the Black Sea.

The blocks cover a combined 2,000 sq km in an underexplored area northwest of the Midia and Pelican concessions. Melrose Resources is operator with 80% working interest, and Petromar Resources SA has 20%. This part of the Black Sea became accessible in February 2009 after Romania and Ukraine resolved a boundary dispute.

Initial analysis indicates that the blocks could be highly prospective and may contain much oil and gas potential, Melrose Resources said. Block EX-27 contains an existing oil discovery, Olimpiskiyi, on which data are limited, drilled in 2001.

The firm work program bid for each block comprises 2D and 3D seismic acquisition in Year 1, one well in Year 2 and two wells in Year 3. Melrose Resources may consider reducing its working interest and expects to spend a minimum of $60 million on exploration the first 3 years.

The government approvals process for assignment of the company's interests in the Midia and Pelican blocks continues to progress.