Lalea Energy Acquires the Bobocu Concession in Romania
Privately-held Dutch E&P company Lalea Energy BV has entered into an agreement with TSX-V listed Claren Energy Corp. to acquire its 100% participating interest in the Bobocu Concession, onshore Romania. In March 2019, Claren had increased it interest in the concession to 100%, acquiring the remaining 60% from Zeta Petroleum Plc.
Under the terms of the agreement, Lalea will acquire the entire share capital of Claren Operations Ltd., a wholly-owned subsidiary of Claren, in exchange for a 5% overriding royalty interest in gas produced from the field, along with the assumption of Claren’s remaining contractual obligations with the Romanian government. Lalea is committed to producing first gas within two years of signing the agreement.
The Bobocu Concession covers an area of approximately 6,200 acres in the Carpathian (Pannonian) basin, situated approximately 150 km north-east of Bucharest. The concession was awarded in December 2007 for a period of 20 years, and contains the Bobocu gas field that was discovered by state-controlled Romgaz in 1966. The field lies in close proximity to key infrastructure, including a 10-inch pipeline connecting to the high-pressure national grid, and has cumulatively produced around 33 billion cubic feet (Bcf) of gas till date.
Lalea is a privately-held integrated energy company focused on exploration and development activities in Romania and Moldova. In addition, the company is also pursuing geothermal opportunities in Romania and the Netherlands.
“We are pleased with Lalea’s commitment to develop the Bobocu gas field. Claren and its shareholders will be able to participate in the upside of any gas production via our overriding royalty,” said Claren’s Chairman and CEO Henry Aldorf.
The transaction is subject to a number of customary conditions including, but not limited to the approval of the TSX-V.