New Zealand Oil and Gas is eyeing opportunities in Romania ahead of the expected release of 25,000sq km of oil and gas exploration acreage there this year.

NZOG told shareholders in an activities report that Romania, in eastern Europe, was just associated with Transylvania and its infamous inhabitant Count Dracula.

It was one of the first oil producing countries in the world and a major oil and gas producer throughout much of the 20th century, with peak production in 1976.

When the Romanian economy collapsed there was little new exploration.

"As a result, Romania remained under-explored using modern techniques".

NZOG, which has been involved in the development of the successful Tui oilfield off the Taranaki coast and the Pike River Coal mine in the South Island, has linked with two Australian companies to look at Romania.

NZOG has made an upfront payment of 44,330 ($NZ104,848) euros with a total payment obligation of 235,000 euros to take a 33 percent stake in a Joint Study and Bid Agreement (FSBA) with the Australian companies.

The partners have already identified promising areas and considered themselves to be in a good position to bid for acreage during the permitting round.

"This is an interesting, low cost investment and represents just the start of an expansion beyond New Zealand," the company said.