Petrom reports first exploration success based on the application of new technologies in Romania

May 14, 2007

• Production test confirms gas-condensate exploration discovery
• Application of new seismic technologies shows early success and identified further exploration potential in the region
• Existing nearby infrastructure could be used for fast track development

Petrom, the largest oil and gas producer in South Eastern Europe, announces the first exploration discovery in Romania based on the application of new technologies. The discovery well was drilled in the Exploration Block I, Adjud. During testing a daily flow rate of 130,000 cubic meters of natural gas and 11 tons of condensate (approximately 900 boe/day) could be confirmed.
Werner Ladwein, member of the Executive Board of Petrom, responsible for Exploration and Production: “The modern technologies that we implemented, especially the 3D and 2D seismic technology, are the basis of this early exploration success. Following our exploration strategy we started the intense seismic programs in 2005 and launched the new exploration drilling campaign at the end of 2006. The Torcesti discovery was one of the first wells of this campaign and that proves that we are on the right track. We will continue to invest in modern technologies on a large scale. Only this year, half of the investment budget of Petrom, namely 1 billion euros, will be used in upstream”. 
The mentioned results were reported at the 570 Torcesti well, as part of the activities performed at the exploration block I Adjud, near the city of Focsani. The Torcesti well was spud end of 2006 and drilled to a depth of 2,986 m. In order to assess the commerciality of the field, new 250 km of 2D seismic has been already acquired and drilling will be continued.
Petrom currently assesses the tie-in options into the nearby existing export infrastructure.
„We intend to start the development of this new field as soon as possible. We think it is possible to start production already end 2007 or beginning of 2008. We will drill another well and install a gas treatment unit, gas tie-in pipelines and a metering station”, added Werner Ladwein.
Following the prove of this new exploration concept, Petrom identified new exploration opportunities in the area and further exploration activities will be carried out.