As outlined in the press release dated July 8, 2013, the Company and its partner, and operator, in Romania, Naftna Industrija Srbije ("NIS") have recently awarded the seismic acquisition contract for the Tria concession. The Company is please to report that seismic permitting is now underway.
The Baile Felix, Periam and Biled concessions continue to move through the approval process. The three agreements are now under review by the last Ministry involved in the review process. Once the review process is completed the agreements will be forwarded to the Prime Minister for final government approval. Seismic acquisition tendering for these concessions is expected to commence in the next few weeks.
The Company looks forward to the initiation of the exploratory drilling programs in Romania. The Phase 1 work program includes seismic surveys and drilling of 3 wells on each of the four blocks. The Company would like to emphasize and ensure all investors and stakeholders understand that the drilling of the wells will be completed utilizing conventional drilling and completion technology. NIS and the Company will be targeting conventional reservoirs using conventional technology and will not be targeting shale formations. Further, the wells will not be subject to fracking or other unconventional techniques associated with the development of shale gas.
The Pannonian Basin in western Romania, Hungary and Serbia is a proven oil & gas region with production from numerous conventional discoveries. The region is characterized by a number of production horizons and both structural and stratigraphic traps. East West and NIS are confident in the prospectivity of the licenses and have already identified a number of initial leads based on existing data. The Company is looking forward to receiving final government approval for the remaining three licenses and commencing the phase 1 work programs with NIS.