UK based oil and gas explorer Regal Petroleum has won the approval from the Romanian government to extend its rights by two and half years as the legal holder of the petroleum exploration, development and production rights for the Barlad Block EV-2 in north east Romania.
These rights have been granted under the terms of the concession agreement originally signed in January 2004 between the National Agency for Mineral Resources and Regal and subsequently extended by a new license extension agreement signed on 21 September 2010.
The license has been extended from 1 September 2010 until 1 March 2013 based on a new minimum work program commitment valued at $5.1m.
The new work program comprises of seismic data acquisition and processing, data interpretation and correlation and other integration studies and drilling of one well to 2500m.
As per this agreement, Regal has the right, following the accomplishment of the new work program, to request a further two and half year extension with a further minimum exploration program, to be agreed.
The company has a 100% working interest in the block having a total area of 6,284sq km.