Winstar Resources Ltd. has finalized a major new joint venture transaction with The Rompetrol Group whereby Winstar would fulfill certain commitments to earn a 60% interest in the onshore Satu Mare Concession in north-western Romania.

The Satu Mare Concession area shares a border with neighbouring Hungary and is also situated within the Pannonian basin, thereby possessing similar geological and geophysical characteristics as Winstar's existing Igal and Torokoppany properties in Hungary. The Satu Mare Concession itself (crosshatched, top left on the map below) comprises 2,949 square kilometres (1,138 square miles, 728,710 acres, 294,900 hectares) contiguous with Hungary's north-eastern border, and is approximately 150 km from Winstar's Hungarian base of operations in Szolnok.

Rompetrol currently holds the right to explore for and produce hydrocarbons from the Satu Mare Concession pursuant to a Concession Agreement, the term of which expires in September, 2033.

Under the terms of the transaction, Winstar will be appointed as Operator and has committed to fulfilling 100% of the first stage of the minimum exploration program under the Concession Agreement by February of 2010 to earn a 60% participating interest in the entire Concession. The work program consists of the re-processing of approximately 1,075 km of existing 2D seismic, the acquisition of 300 km of new 2D seismic, and the drilling of one exploration well, with estimated capital costs of the entire program of $6.6MM USD. Winstar expects that the work program will be performed by a newly formed Romanian subsidiary of Winstar's wholly owned Dutch subsidiary, Winstar B.V.

Winstar has an option to continue with the second stage of exploration under the Concession Agreement under the same terms or, to retain its 60% earned interest in any discoveries resulting from activities in the first stage, and relinquish the balance of the lands.Seismic and drilling obligations in the second stage would total approximately $6MM USD.

The re-processing of the existing seismic has already been completed by Rompetrol S.A. and Winstar will commence work immediately to establish a working presence in Romania and to be recognized as Operator of the Satu Mare Concession. Simultaneously, technical work will commence in conjunction with Rompetrol on the design of the new 2D seismic program and identification of potential drilling locations.

Tags: Rompetrol Group, Winstar Resources Ltd.