Nov 3 2010
Park Place Energy Corp. has announced that the Company has created a subsidiary, PetroBulgaria Energy Inc. to hold its interest in the Vranino block in Bulgaria.
Going forward, PetroBulgaria's mandate will be to identify, acquire and operate oil and gas exploration and production properties in Bulgaria either through direct acquisition from the Ministry of Economy, Energy and Tourism through the Governments bid process or through joint venture opportunities.
Park Place is currently evaluating several options surrounding PetroBulgaria. The Company is currently in discussions with several industry leaders and is evaluating the potential of maintaining PetroBulgaria as a wholly-owned subsidiary as well as the spin-out potential of the subsidiary. Should management decide to move forward with a spinout option, which would see shares of PetroBulgaria distributed on a prorata basis to the then shareholders of Park Place, PetroBulgaria would most likely seek a listing in the Canadian public markets with a capitalization of that company.
Park Place's award of the Vranino property is now in the appeal process as it is common practice within the industry in Eastern Europe. Company representatives have been in contact with several active majors in the region that have expressed interest in entering joint venture agreements on the Vranino block. The Company is also currently conducting due diligence on several other Bulgarian exploration opportunities that are currently available.
David Johnson, president Park Place Energy, stated "This is a major achievement for Park Place. We have been working diligently to form these relationships and acquire large blue-sky gas exploration land positions. Bulgaria is the ideal environment for a junior exploration company like Park Place to create a substantial presence and move to the next level."
Source: Park Place Energy Corp.