East West Petroleum received approval to perform exploration works in Romania

November 29, 2013

The Government of Romania approved the petroleum agreement for exploration-development-production between East West Petroleum and National Agency of Mineral Resources for concession blocks Baile Felix, Periam and Biled. Earlier, a similar license was issued by the Romanian Government to the partnership NIS and East West Petroleum in relation to block Tria. Commitment assumed by partners provides implementation on the territory of 4 blocks 2D (total length - 880 km) and 3D (total area - 600 sq. km) of seismic exploration, as well as defining the drilling points of 12 exploratory wells (3 wells for each of the four blocks). On the block Tria a part of the 2D seismic survey program has already been carried out, currently is in the process preparation for 3-D seismic studies cycle. As it is planned, the seismic-research works on blocks Baile Felix, Periam and Biled are scheduled to start in the first half of 2014. On the territory of the all blocks partners will performe geological survey only on conventional hydrocarbon reserves, with the use of environmental friendly technologies Geological exploration on the territory of blocks Baile Felix, Tria, Periam and Biled will be carried out within the implementation of the agreement concluded in 2011 between the National Agency of Natural Resources of Romania (NAMR) and Canadian company East West Petroleum. NIS subsidiary in Romania has operator status on the project. Participation in the project is distributed in the ratio of 85% to 15% in favor of NIS. "Ratification of licenses for oil and gas blocks within a joint project with East West Petroleum allows us to initiate implementation of undertaken license obligations. Following a detailed seismic survey we assume to confirm the preliminary estimates of reserves and to determine the optimal methods of production in these blocks. We have good reasons to expect a positive result of geological exploration, since four Romanian blocks are geologically associated with oil and gas deposits on the territory of Serbia, where in recent years NIS has double increased the volume of confirmed reserves and production of hydrocarbons. I should add that we have been working successfully in the upstream segment in other key countries in the region as well, however, a joint project with East West Petroleum is our largest overseas projects today“, said NIS CEO Kirill Kravchenko.