“Following the Romanian Government Decision no. 43 dated January 22, 2014 and published in the Official Gazette on January 28, 2014, the Transfer Agreement signed in October 2012 between ExxonMobil and OMV Petrom, and Sterling Resources Ltd. and Petro Ventures Europe B.V. for the purchase of hydrocarbon exploration and production rights to the deep water portion of the XV Midia Block (“Midia Deep”) became effective. Gas Plus opted to retain its 15% interest in both deep water and shallow water portions of the XV Midia Block,” OMV Petrom said Wednesday in a press release.
Thus, the participating interests in Midia Deep are: ExxonMobil 42.5%, OMV Petrom 42.5%, and Gas Plus 15%.
According to a Sterling Resources release, the company will get $29.25 million from the sale of its 65% interest in the portion, and will also be entitled to further proceeds of $29.25 million upon a commercial discovery and an additional $19.5 million upon first production from the portion.
“The net proceeds will be used to bolster the balance sheet by providing an additional cash buffer. In addition, completion of the transaction will allow us to move ahead again with a process to sell down our equity interests in all of our Romanian licenses. This process had been held up in 2013 by the delay in being able to complete the Carve-out Transaction,” stated Jake Ulrich, Sterling’s chairman and interim chief executive officer.
Romanian state-run natural gas producer Romgaz has an option to purchase a 10% participating interest in Midia Deep, based on terms agreed in February 2013, when it signed an agreement with ExxonMobil and Petrom to potentially reassign a 10% share in their joint Midia block once the two oil companies obtain all necessary exploration and production rights in the perimeter.
In October 2012, Petrom and ExxonMobil reached an agreement with Canada’s Sterling Resources and Petro Ventures Europe to buy an 85% interest in a portion of the XV Midia Block.
ExxonMobil will be the operator of petroleum operations in Midia Deep, which is adjacent to the Neptun Deep block, in which ExxonMobil and OMV Petrom announced a gas discovery in 2012.