OMV Petrom – Neptun Deep exploration: Project update

Additional, pre-appraisal evaluation of Domino-1 well results enables an initial estimate of potential gas production of approx. 630 mn cf per day

OMV Petrom continues to progress plans for future activity in the deep water sector of the Neptun Block offshore Romania, following the gas discovery made at the first well – Domino-1 – announced in February 2012, jointly with operator ExxonMobil Exploration and Production Romania Limited (EMEPRL). A 3D seismic survey on the Neptun Deep block, the largest survey ever recorded in the Romanian sector of the Black Sea, started at the end of 2012 and is expected to be completed in Q2/13. EMEPRL and OMV Petrom expect to invest up to USD 1 bn in their exploration program, which comprises the ongoing 3D seismic survey and further exploration and appraisal drilling, expected to begin in late 2013 or early 2014. Further evaluation of the Domino-1 well results has enabled an initial pre-appraisal estimate of potential gas production from a future Domino development of approx. 630 mn cf/d (million cubic feet per day). However, further acquisition and interpretation of data, including appraisal drilling and well testing, is needed to confirm the resource size and its commerciality before any decision is taken to proceed to a development phase. Moreover, should further work confirm the technical and commercial feasibility of deep water gas production from the Neptun block, further investments during both the appraisal and development phases could reach several billion USD with the potential for first production towards the end of the decade at the earliest. “OMV Petrom and EMEPRL remain very encouraged by the Domino-1 discovery which is very important to Romania” said Mariana Gheorghe, CEO, OMV Petrom. “The Neptun Deep block is unique and technically challenging, thus future development will require very substantial investment over a long time period. While we are enthusiastic about the program results and early development planning, we are very much looking forward to commencing the following drilling campaign planned by end of the year.”

BACKGROUND INFORMATION

Neptun Block (Deep Water Sector)

The Neptun Block deepwater sector covers an area of approximately 9,900 square kilometers in water depths ranging from 50 to 1,700 meters. ExxonMobil Exploration and Production Romania Limited and OMV Petrom signed an agreement in November 2008 for ExxonMobil to acquire a 50 percent interest in the deepwater portion of the Neptun Block. In January 2012, ExxonMobil and OMV Petrom announced the Domino-1 exploration well encountered natural gas in the deepwater sector of the Neptun Block. The Domino-1 well is located 170 kilometers offshore in water about 1,000 meters deep.

Source: www.bvb.ro