Park Place Energy Corp. is an energy company engaged in exploration for oil
and natural gas, primarily in the Dobrich region of northeast Bulgaria. In 2014,
we moved our headquarter offices to Dallas, Texas from Calgary, Alberta, Canada,
and established a registered office in Bulgaria. Our corporate headquarters
are located at 2200 Ross Avenue, Suite 4500, Dallas, Texas 75201.
Today, the operations of our Company and its subsidiary concentrate on natural
gas exploration in the Dobrich region of northeast Bulgaria. We continue to
look for new opportunities in other countries with particular focus on Eastern
Europe. Our goal is to become a producer of natural gas in Bulgaria and other
countries.
In 2010, we revamped our business strategy to focus on obtaining gas properties
in Europe. We were attracted to the high price of natural gas and shortage of
supply on the European continent. We also saw the possibility of prolonged depressed
natural gas prices in North America.
In October of 2010, we were awarded an exploration permit for the “Vranino
1-11 Block” located in Dobrudja Basin, Bulgaria, by the Bulgarian Counsel
of Ministers. On April 1, 2014, the Company entered into an Agreement for Crude
Oil and Natural Gas Prospecting and Exploration in the Vranino 1-11 Block with
the Ministry of Economy and Energy of Bulgaria (the “License Agreement”).
The initial term of the License Agreement is five years. This five-year period
will commence once the Bulgarian regulatory authorities approve of the Company’s
work programs for the permit area. The License Agreement (or applicable legislation)
provides for possible extension periods for up to five additional years during
the exploration phase, as well as the conversion of the License Agreement to
an exploitation concession, which can last up to 35 years. Under the License
Agreement, the Company will submit a yearly work program that is subject to
approval of the Bulgarian regulatory authorities.
The Company’s commitment is to perform geological and geophysical exploration
activities in the first 3 years of the initial term (the “Exploration
and Geophysical Work Stage”), followed by drilling activities in years
4 and 5 of the initial term (the “Data Evaluation and Drilling Stage”).
The Company is required to drill 10,000 meters (approximately 32,800 feet) of
new wellbore (which may be vertical, horizontal or diagonal) and conduct other
exploration activities during the initial term.
We are engaged in identifying the availability of drilling and other oilfield
services in the vicinity of the permit area. We have located several suitable
service providers for drilling and other services that we intend to engage at
the appropriate time. Local companies in Bulgaria will be used to provide services
to the extent feasible. However, the Bulgarian energy sector is relatively undeveloped;
accordingly, the availability of local services specialized to meet our requirements
may be limited. Park Place has determined that such expertise, services or equipment
may be available in Romania, Turkey or other countries in the vicinity.
Repatriation of Earnings. Currently, there are no restrictions on the repatriation
of earnings or capital to foreign entities from Bulgaria. However, there can
be no assurance that any such restrictions on repatriation of earnings or capital
from the aforementioned countries or any other country where we may invest will
not be imposed in the future.
Environmental. The oil and natural gas industry is subject to extensive environmental
regulations in Bulgaria. Environmental regulations establish standards respecting
health, safety and environmental matters and place restrictions and prohibitions
on emissions of various substances produced concurrently with oil and natural
gas. The regulatory requirements cover the handling and disposal of drilling
and production waste products and waste created by water and air pollution control
procedures. These regulations may have an impact on the selection of drilling
locations and facilities, potentially resulting in increased capital expenditures.
In addition, environmental legislation may require those wells and production
facilities to be abandoned and sites reclaimed to the satisfaction of local
authorities. Such regulation has increased the cost of planning, designing,
drilling, operating and, in some instances, abandoning wells. We are committed
to complying with environmental and operation legislation wherever we operate.
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