Oversubscribed IPO funding prospective Romanian dig

OIL and gas explorer and developer Zeta Petroleum’s initial public offering (IPO) has closed oversubscribed, raising more than $8 million though the issue of 40 million shares at $0.20 per share, with one free attaching option exercisable at $0.20.
Managed by Patersons Securities, the IPO closed on April 18.
According to a spokesperson from Zeta, the company was planning to list on the ASX in May.
Zeta managing director Stephen West said in a statement that the company was now looking forward to drilling at its Bobocu and Jimbolia tenements in Eastern Romania, both of which were acquired in 2007. “The funds raised will primarily be used to appraise and develop the Bobocu gas field, which has contingent resources of 44.36bcf [billion cubic feet] and prospective resources of 14.09bcf,” Mr West said. “In addition, we plan to appraise and develop the Jimbolia oil field, which has prospective resources of 1.72 million barrels of oil.”
Mr West expected drilling to commence this year and full field production to begin in 2013, corresponding with the deregulation of the Romanian gas market. “We expect this EU [European Union] sanctioned deregulation to more than double the current gas price of US$4.25 per mscf [thousand standard cubic feet]. “Bobocu is a very attractive gas redevelopment project in a country with a deep and mature gas market that imports over 30 per cent of its natural gas demand,” he said. The Bobocu gas field is a previously state-owned resource containing a mature biogenic gas field that Zeta plans to bring back into production by both utilising using existing wells and drilling new ones.
The Jimbolia oil field lies in the eastern part of Romania’s Pannonian Basin. Two fields in the basin have had historical gas production and wells tested by Zeta have produced oil.

 

By Josh Del Pino

One Response to Oversubscribed IPO funding prospective Romanian dig

  1. Claudine

    May 21, 2012 at 8:24 am

    thanks for taking your time to explain that, i bet everyone likes your articles.http://www.creditocartao.net

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