Company Overview

In December 2012, Warburg Pincus led a significant line-of-equity commitment to Sand Hill Petroleum BV, a newly-formed oil and gas E&P company with subsidiaries in Budapest, Hungary and Bucharest, Romania. The company is focused on the Pannonian Basin in Hungary and Romania. Sand Hill Petroleum BV plans to apply modern North American exploration technology — including advanced 3D seismic acquisition and processing — to mature onshore areas with the goal of identifying overlooked conventional resources, predominantly natural gas. Following an initial exploration phase, the company is developing its discoveries into producing reserves and continuing to explore in further licenses. The company is led by an experienced management team with extensive knowledge of the fundamentals of hydrocarbon exploration and the business environment of the European Continent.

Recent Developments

Since its founding in December, 2012 Sand Hill Petroleum BV has acquired a significant exploration position in Hungary through its Hungarian subsidiary O&GD Central Ltd. Through 2017, the Company had drilled twenty-five exploration wells and acquired ca. 700 km2 new 3D and 578 km 2D seismic survey on its Hungarian concession blocks. The company was also awarded two license blocks (Újléta and Nádudvar) in 2014 during the 2nd Hungarian concession bid round and four more blocks (Berettyóújfalu, Mogyoród, Nagykáta and Ócsa) in 2015 during the 3rd Hungarian Concession Round. These later concession areas altogether increased the company’s total acreage by 1,000,000 acres (6,500 km2) to more than 1.6 million acres.

In light of positive drilling results, the company commenced gas production in September 2015, and produced ca. 800,000 standard cubic meters of gas per day by the end of 2017. During 2016 SHP acquired wells, facilities, gas plant and related infrastructure in the Endrőd area with approximately 250 thousand m3 per day processing capacity.

Additionally, during December 2016 the Company’s Romanian subsidiary, Sand Hill Petroleum Romania SRL, acquired a majority participating interest in two exploration blocks (EX-1 Voivozi and EX-5 Adea) in Romania. SHPR was also appointed as operator. Both blocks are in the exploration phase where the partners are planning seismic works and drilling exploration wells over the next couple of years.

Sand Hill Petroleum BV

Cantonlaan 4, Baarn, Netherlands, 3742 CJ

Telephone: +31 (0) 35 203 1475