Petroceltic Moves Black Sea Focus to Romania
Petroceltic International is shifting its Black Sea focus, following disappointing drilling results at the Kamchia-1 exploration well offshore Bulgaria.
The Irish company plans 2013 investments of US 20 million for exploration works at two offshore concessions in the Romanian section of the Black Sea.
Petroceltic holds 40% operated interests in EX-27 Muridava and EX-28 Est Cobalcescu concessions. The two licences have a combined area of approximately 2,000 square kilometres located in shallow water in the western Black Sea.
The prospects were held by Melrose Resources, which Petroceltic bought for 165 million pounds (about $260 million) in August 2012.
Petroceltic plans to drill two exploration bores in 2013, based upon the favourable results received from 3D seismic surveys.
“The 3D seismic prospection made in 2012 in the Muridava and Est Cobalcescu perimeters, on a surface of 1.930 square kilometers have confirmed the presence of potential hydrocarbon resources estimated to the equivalent of 50 up to 80 billion cubic meters”, reported a Petroceltic presentation.
A further four wells are planned to be drilled in 2014.
Sterling Resources Ltd (as to 40%) and Petromar (as to 20%) owns the balance of equity stakes in Muridava concession. Petroceltic farmed out equal 30% interests in Est Cobalcescu to Beach Energy and Petromar.
Both blocks are historically under-explored, as they are located in an area that was the object of territorial dispute between Romania and Ukraine. The dispute was solved in 2009 in Romania’s favor by the International Court of Justice in Hague.
The first well, Cobalcescu South-1, will target two intervals with a combined unrisked prospective resources of 404 Bcf. The planned total well depth is around 3,100 metres with the well expected to take approximately two months to complete.
The second well, Muridava-1, contains the existing undeveloped Olimpiskaya gas discovery and is on trend with the Eugenia discovery. Petroceltic believes it holds multiple targets with combined unrisked prospective resources of 169 Bcf. The well is expected to be drilled to a total depth of around 3,300 metres taking approximately two months to complete.
Romania's well established oil and gas industry is experiencing a renaissance following discoveries at the Domino-1 (OMV Petrom-ExxonMobil) and Eugenia-1 (Sterling Resources Ltd ) wells
In February 2012, OMV Petrom and ExxonMobil Exploration and Production Romania Limited (EMEPRL) announced that the first exploration well drilled at depth in the Black Sea, the Domino-1 exploration well, encountered 70.7 meters of net gas pay resulting in a preliminary estimate for the accumulation ranging from 1.5 to 3 tcf (42 to 84 bcm). Supplementary evaluation of the results from Domino-1 provided a preliminary estimation of the potential gas production of approximately 630 million cubic feet per day, (6.5 bcm annually).
The figure is significant, considering current Romanian consumption approximates 14 bcm. Present Romanian production is around 11 bcm, with Petrom, through all its production activities in Romania, currently delivering 5 to 6 bcm annually.
During a visit to a offshore platform operated by OMV Petrom earlier this month, Romanian Prime Minister Victor Ponta stated that development of the natural gas resources from the Black Sea provided not only the prospects of energy independence and economic development, but was a source of pride for Romania.
More on Natural Gas in Romania HERE