Claren Energy, a Canadian oil and gas company, has agreed to sell its 100% stake in the Bobocu production license, containing the Bobocu gas field, and located onshore Romania to Lalea Energy for an undisclosed price.

In this connection, the companies have signed a share purchase agreement, under which Lalea Energy will take over the remaining contractual obligations with the Romanian government by acquiring 100% of Claren Operations, a fully-owned subsidiary of Claren Energy.

In consideration of the acquisition, Lalea Energy will give an overriding royalty of 5% to Claren Energy on produced gas during the economic field life of the Bobocu gas field.

Lalea Energy is expected to produce first gas from the Romanian field within two years after the signing of the deal.

Henry Aldorf – Claren Energy – Chairman and CEO said: “We are pleased with Lalea’s commitment to develop the Bobocu gas field.

“Claren and its shareholders will be able to participate in the upside of any gas production via our overriding royalty.”

Closing of the deal is subject to various customary conditions, which include the approval of the TSX Venture Exchange.

  Bobocu production license, Claren Energy, Henry Aldorf, Lalea Energy, Romania