ZTA - Zeta Petroleum

Operator Confirms Live Well at Jimbolia-100, Romania

Zeta Petroleum announce that the Jimbolia-100 well, (‘Jimbolia- 100’ or ‘the Well’), an appraisal well on the Jimbolia oil concession in Romania has been declared a live well by the Operator, NIS Petrol SRL, (a wholly owned subsidiary of NIS Gazprom Neft), following preliminary testing operations conducted at depths between 2,559 and 2,565 metres, the first of four targeted intervals.

The well is currently shut in during which time the Operator has observed combustible gas in the wellhead annular. The Company has been informed by the Operator that testing of the four interval targets will likely commence in July 2013, once the replacement workover rig has been sourced, contracted and mobilised.

Successful Gas Production Test at Suceava

Overview
● Dornesti Sud-1 well tested at 26,000m3/day and has now been suspended ready for production
● Successful production test at the Dornesti Sud-1 well is part of an on-going feasibility study to bring two gas discovery wells on the Suceava concession into production
● Potential for rapid payback from the Dornesti Sud-1 well with low cost development options being considered
● A second suspended discovery well, the SE-1, that flowed gas at commercial rates in testing, will also be examined
● Existing production at Climauti gas field remains stable at 14,600m3/day generating net revenues to Zeta of US$25,000 per month

Acquisition of 100% Interest in Proven Oil Concession, Romania

Zeta Petroleum plc, the ASX listed Romanian focused oil and gas exploration and production company, is pleased to announce that it has secured a 100% interest in the previously producing Grivita Nord oil concession (‘Grivita’) in Eastern Romania following the signing of a sale and purchase agreement to acquire 100% of the issued capital of Celtique Energie SRL (‘Celtique Romania’), a wholly owned subsidiary of Celtique Energie Petroleum Limited (‘Celtique’).

Highlights
● Grivita has previously produced 763,457 barrels of oil from two separate structures on the concession - the Northern and the Southern structures
● Additional development upside – new mapping indicates majority of the reserves in the Southern structure are still to be recovered
● P50 reserves (unaudited) for Southern structure estimated at 448,000 barrels of oil with an unrisked NPV10 of US$25.55 million
● Forward plan to bring the field back into production by drilling a development well into a crestal location on the Southern structure
● Cost of acquisition back ended - based on future commercial success with only a minimal upfront payment required
● Acquisition is in line with the Company’s strategy to build a leading oil and gas company focused on Eastern Europe with a multi-stage portfolio of assets

Term Sheets Signed to Acquire Producing Russian Oil Assets and US$2 million Convertible Loan

Zeta Petroleum plc, the ASX listed oil and gas exploration and production company, is pleased to announce it has signed a non-binding term sheet to acquire Stikito Ltd (‘Stikito’) a private company which has a 100% owned interest in four production and exploration licences (the “VES Project”), located in the prolific Volga Urals basin, Orenburg Oblast region of the Russian Federation. The licences are currently producing circa 220 barrels of oil per day (“BOPD”) and a 2012 independent reserves report (“IRR”) issued to a former owner indicates 2P reserves of 12.8 million barrels of oil equivalent. This proposed acquisition is in line with the Company’s strategy to build a leading exploration and production company, with Russia being a natural step-out from the current Eastern Europe focus area.

The 280km² VES Project is located close to the supergiant Orenburg field, and the world class Karachaganak field. The VES Project consists of four previously producing or currently producing licences: Nikiforovskoye; Voinskoye; Veselovskoye; Besedinskoye. The VES Project offers significant development potential including low cost workovers of existing wellbores and high impact drilling to new horizons.

In order to fund the initial upfront acquisition cost, Zeta has signed a heads of terms with an existing shareholder, subject to the VES Project acquisition completing, to provide a US$2 million convertible loan, with 50% of the loan convertible at 1 cent per share and 50% of the loan convertible at the lower of 3 cents and the average 30 day share price prior to conversion. In addition, the lender will be granted 10 million share options with an exercise price of 5 cents for a period of 3 years.

Successful due diligence is to be completed before a binding legal agreement between Zeta and the shareholders of Stikito is executed. Upon completion total consideration will become payable as follows:
● a cash payment of US$2,000,000 within 15 days of signing a binding legal agreement;
● the allotment of 155 million ordinary shares in Zeta at an issue price of 5 cents per share; and
● subject to Stikito’s assets maintaining average oil production levels in excess of 220 BOPD for 90 days, Zeta shall pay an additional cash consideration of US$1,000,000.

This equates to a purchase price of approximately US$0.38 per barrel of 2P reserves based on Zeta’s current share price, which the Company believes is a very attractive multiple.

The term sheet to acquire the VES Project and the convertible loan term sheet are both non-binding and there can be no certainty that the transactions contemplated by them will complete in a particular time frame or at all.

ZTA has barely traded in the past week or so, but made a jump from 0.5c to 1.5c today.

No news declared yet.

Buy volume jumped today from around 2.5m to around 11m but these figures are deceptive as there is very little buying pressure >1c.

Selling pressure virtually non-existant at the moment, but that could change to millions within the next cent or so if buying continues.

Very small volumes, just over 500,000 shares today.

There may be news imminent.....

springhill said:

ZTA has barely traded in the past week or so, but made a jump from 0.5c to 1.5c today.

No news declared yet.

Buy volume jumped today from around 2.5m to around 11m but these figures are deceptive as there is very little buying pressure >1c.

Selling pressure virtually non-existant at the moment, but that could change to millions within the next cent or so if buying continues.

Very small volumes, just over 500,000 shares today.

There may be news imminent.....

Click to expand...

where are you Spring Hill ?
Does not seem to have seen a post from you since this one.