Galaxy Energy investing in Romania

Oil company Galaxy Energy is about to become one of the newest American investors in Romania, as soon as it completes the acquisition of another US-based company Pannonian Energy, corporate representatives say. Galaxy Energy signed a letter of intent in late November last year, in order to buy the shares of Pannonian, concessionaire of the oil drilling operations in the E III-11 Valea Jiului (Jiu Valley) perimeter. Pannonian Energy signed a thirty-year concession agreement for the oil drilling operations in the above-mentioned perimeter in 2000, which came into effect at the end of last year. Galaxy officials say they plan to integrate Pannonian as an operational subsidiary and concentrate their first efforts after takeover on the perimeter in the Jiu Valley. According to the surveys conducted by the independent company Gustavsson Associates Inc., “the geological, geophysical data, as well as those collected in the mining area show that large methane gas and coal deposits are very likely to exist here.” ZF