Dafora"s Călburean negotiating the resumption of a five million dollar contract in Ukraine

A mission of drilling company "Dafora" Mediaş (symbol: DAFR) which includes Gheorghe Călburean, the chairman and general manager of the company, will be leaving tomorrow for Ukraine in order to negotiate a contract for the drilling of two wells, Teodor Orzan, head of the company"s drilling division, said for BURSA. The contract could be worth up to five million Euros, according to the evolution of the negotiations. Discussions will unfold through "Dafora Ukraine", a branch of the Romanian company, which was created for reasons of ensuring compliance with the Ukrainian legislation.

Mr. Orzan said: "We are going to meet the officials of two Ukrainian companies, one of which we had entered a contract with last year, which was later abandoned after the company in question ran out of money. The contract could span a year, and if it gets decided we should dig two wells, it could be worth 4-5 million dollars".

Returning to the international markets is one of the goals that "Dafora" set for itself ever since the end of 2009, as the company"s activity shrank on the back of reduced activity in the oil sector, due the drop in crude oil prices.

Kuwait is another market that the company is interested in accessing, but it first needs to pass a screening process, before it can attend auctions.

"At the end of last year, we sent to Kuwait the final documents that were asked for the preliminary screening and we are now waiting for them to be processed", Mr. Orzan said.

"Dafora" Mediaş has a capitalization of 112.93 million lei, based on the price of 0.116 lei/share of yesterday"s trading session. Gheorghe Călburean controls 48.5% of the company, with "Foraj Sonde" Craiova holding a 5.4% stake in the company.