International oil, gas exploration company head denies many rumors on concession agreement on hydrocarbon exploration

Chisinau, 24 March /MOLDPRES/- President of Frontera Resources International company Zaza Mamulaishivili today denied many rumors spreading around the concession agreement on hydrocarbon exploration and development signed with the Moldovan government.

Thus, media wrote that the American company has leased 40 per cent of Moldova’s territory and will explore shale gas. “The land does not belong to us. We will not own any land in Moldova. If we reach an agreement with farmers on drilling wells on their land, they will be rewarded very well”, Zaza Mamulaishivili said.

He added he would not explore shale gas reserves. “There is a potential of shale gas in Georgia, where we operate, but we do not explore it. We are not interested in exploring shale gas”, the head said. Gas deposits discovered in Georgia will be for a period of 150 years. “I would be very happy to do the same statement about Moldova after a few years”, the head said.

The official notes that the company has already started work through analysis of information in geophysics, geological and others. Zaza Mamulaishivili says he never would have thought to come to Moldova, but having worked 15-20 years in the Black Sea area, has identified a pool comprising south of Moldova, southwestern Romania and southern Ukraine. “We believe that there is an increased oil and gas reserve”.

There were reserves of 100 million barrels of oil. “It allows us to risk our capital in Moldova. If we manage, we will bring you good news over 5 years”, the official said.

The government and the Frontiera Resources International company signed a concession agreement on hydrocarbon exploration and development on 3 March. “Our explorations of the last 10 years are meant to help Moldova become independent in energy. The expenses are estimated at nearly 6 million dollars over the next 5 years. If we succeed, we are willing to spend between 50 and 100 million dollars”, the official said.

Attending the event, US Ambassador to Moldova James Pettit said “this project will last a long time and has a certain risk, but it is one hundred percent of the company. I am proud that an American company realizes it and I hope it is a beginning of an increase in foreign investment”.

(Reporter V. Bercu, editor A. Răileanu)