$10m exploration investments in Moldova

The largest natural gas producer in Romania, Romgaz Medias yesterday signed a contract with Ramco Romania SRL, Europa Oil & Gas (UK) and Millennium International Resources (registered in the British Virgin Islands). The object of the contract is a joint operation of the Brodina and Cuejdiu (northern Moldova) perimeters. The investments of the four companies, which are determined to find natural gases or petroleum are estimated at $10-$12 million (exploration only) until 2007, according to sources within the consortium. “The joint operation contract will decide how the consortium that will drill in the Brodina and Cuejdiu perimeters should divide the working schedule agreed upon with the National Mineral Resources Agency (ANRM), with risks and investments born by every company depending on its stake,” the quoted sources said. Romgaz holds 37.5% in the two perimeters, while UK’s Ramco and Europa Oil & Gas hold 28.7% each and Millennium 5%. The exploration stage of the programme includes reprocessing the already existing data, building seismic profiles etc. Investments of the Romgaz-Ramco-Europa Oil & Gas-Millennium consortium are estimated at about $2.5 million for this year, while concession agreements for the two perimeters are valid for 30 years. Ramco is already making its second attempt on this market, after having lost $14 million in the Moinesti VI Block, which it operated together with SNP Petrom. Although SNP Petrom held 51% in the block, the risk and losses were fully born by Ramco, according to the production division contract. ZF