Romania
South Craiova Concession
Stratic holds a 40% working interest in the South Craiova exploration permit for block EIII-7. This interest
was acquired in two stages by two separate transactions, the first in December 2004 and the second in January
2007. The permit is currently in the four-year extension phase of the initial exploration period, which is valid
until December 2009. No further extensions are possible to the exploration period. Sterling Resources currently
operates the South Craiova exploration permit and holds a 60% working interest.
The South Craiova exploration permit is located to the south and west of Bucharest, close to production and
transportation infrastructure and with a generally flat topography providing ease of access for operations. The
South Craiova exploration permit covers an area of 1.5 million acres located between the producing Romanian
fields to the north and the Bulgarian fields to the south.
There are no outstanding work commitments to be fulfilled in relation to the South Craiova exploration permit.
Stratic intends to review the prospectivity and future potential of the area covered by the permit. Subject to
findings of Stratic’s review, it is likely that Stratic will seek to exit its interest in the South Craiova
exploration permit.
