November 21, 2019 13:24 PST

Overview

 

High Average Net Coal Footage per Well

  • Over 60 substantial seams
  • Depth ranges 1200-2200m
  • Potential for horizontal lateral wells

Ready Market

  • Gas pipeline connection within 15km
  • Excellent fiscal terms
  • High gas demand, high gas prices (>$8/mcf)

Extensive Database

  • Over 220 wells drilled 1960-1990 to assess deep mining potential

Potential

 

Potential World Class Resource Potential

  • 100% interest in 98,205 acres (397 km2) license in NE Bulgaria for CBM in 2014
  • Natural gas charged coal seams in concentrated area of license present excellent opportunity for Coalbed Methane (CBM) play
  • Anticipating regulatory approval to commence operations

Fiscal Terms

 

Tax
10% Corporate tax rate
Royalty
Sliding scale Royalty starting at 2.5%

Royalty based on R Factor; 2.5% up to R=1.5 up to max royalty of 25.5% when R>3.0

2.5% GOR
Term
Initial Term of 5 years with 2 two year extensions

 

Minimum License Work Commitment Over 5 Years
Years 1-3: Geological & Geophysical
Data evaluation

Acquire new 2D and/or 3D seismic
Years 4-5: Drilling
Drill 10,000 meters of new wellbore

May be drilled vertically, horizontally or diagonally and may be new wells or deepening or sidetrack of existing wells
Work program is flexible – will permit early drilling to be followed by seismic acquisition

Investor Information

CSE listing pending. TCF symbol requested.