Under the terms of the agreement, Carpathian will carry the cost of re-establishing production from the Krasna oil field – located in northern Moravia - and following priority payback of costs, it will be entitled to a 50 per cent share of revenue.
The Krasna field was discovered and tested just prior to the end of communist rule in what was then Czechoslovakia. Crude oil and associated gas are contained within Devonian carbonates at about 1600 metres.
Carparthian said initial production would be from the KS8 well, which during field evaluation flowed at an average rate of 100 barrels of oil per day.
Carpathian added two other existing wells will be inspected and tested at an early stage to establish their capacity to add to production from KS8.
“Well site preparation and construction of production equipment is to commence at KS8 immediately, followed by a production test scheduled to be completed prior to European winter,†the company said.
