Some very important articles have come out over the last 2-6 weeks regarding NIS/Serbia and EU sanctions, which could stifle growth in Serbia due to higher gas prices, as well as damage some of the country’s strongest businesses. Based on the articles below, it is quite likely that a deal will occur by November 2022 or sooner, which is when the sixth EU sanction package against Russia takes effect and will hurt Serbia. All that needs to occur is for Gazprom(56% shareholder of NIS) to reduce their stake to 49.9% or less(under 50%) and then all sanctions can be avoided. This will then allow NIS and East West to complete their deal, as stated in EW’s news release and MD&A.
"NIS Petrol Romania has in its portfolio six oil and gas perimeters on the territory of Romania, with operator status in all of them . Four concessions are for exploration-development and exploitation activities in partnership with the Canadian company East West Petroleum (two in Bihor county – EX-2 Tria and EX-3 Băile Felix and two in Timiș county – EX-7 Periam and EX-8 Biled ). A fifth concession is held in partnership with Zeta Petroleum and Armax Gaz, namely the oil development and exploitation concession in the perimeter of DEE V-20 Jimbolia, Timiș county. The sixth concession for exploration-development-exploitation activities is also located in Timiș County, in the EX-12 Crai Nou perimeter."
July 29 2022 – NIS Financial results, showing growth of production in Romania. Some of that revenue is likely from EW’s JV lease, which means that the royalty deal pending would start to pay out right away, once completed.