March 6 (SeeNews) - US oil and gas company Frontera Resources has announced the signing a 50-year protocol of joint declaration with Moldova's government regarding the exploration, production and development of hydrocarbon resources in the southeast European country.
"In the joint declaration, Frontera and Moldova's government re-affirmed their mutual commitments under a concession agreement signed in January, which grants the company the exclusive right to explore, produce and develop hydrocarbon resources within an area comprising approximately 3 million acres situated in the southern portion of the country," the company said in a press release on Friday.
In a separate statement on Friday, Moldova's government said that Frontera committed to invest over $6 million (5.6 million euro) in the next 5 years, with growth potential to $50-$100 million, if successful. At the same time, the investor will create about 300 jobs, the government said.
The overall term of the concession agreement is 50 years from the date of its execution, including an initial exploration phase of up to ten years, Frontera said.
The joint declaration was signed by Moldovan prime minister Pavel Philip and Frontera's chairman and CEO Steve C. Nicandros.
“Frontera is very pleased to have marked this important milestone with the Government of Moldova. With this affirmation, we look forward to conducting new exploration initiatives with a view towards helping Moldova to develop its economy and achieve its energy independence,” Steve C. Nicandros said.
Frontera Resources is an international oil and gas exploration and production company that was founded in 1996. The company’s strategy is to identify opportunities and operate in emerging markets in Eastern Europe around the Black Sea.
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