Proactiveinvestors United Kingdom

UPDATE: Aurelian Oil & Gas and shareholder Kulczyk Investments in Polish cooperation agreement

Mon, 28 Nov 2011 15:18:00 +0000

Aurelian Oil & Gas (LON:AUL) is to cooperate with 13.77 per cent shareholder Kulczyk Investments SA in upstream oil and gas opportunities in Poland.

The parties have signed a Relationship and Area of Mutual Interest (R&AMI) agreement under which they will establish a strategic partnership.

Kulczyk and Aurelian will jointly originate and invest in upstream oil and gas opportunities in Poland and co-operate in gas marketing, procurement of oilfield services and, in time, the procurement of midstream processing and production infrastructure.

As part of the agreeement, and where operatorship is available, Aurelian will operate all licences that the partnership co-invests into, with Kulczyk bringing significant capital and strong downstream and gas commercialisation capabilities to the venture, Aurelian said.

Kulczyk is a large industrial group with interests in a broad range of sectors in Poland, including integrated energy which it is seeking to grow further through increased investment in the Polish upstream sector.

Aurelian chief executive Rowen Bainbridge said: "Kulczyk Investments is a strong, well-funded, local partner who we know well and have a long affiliation with.

"Excellent synergies exist between our technical capability and Kulczyk Investments' M&A and gas commercialisation skills. We see this agreement as key catalyst to support the growth of Aurelian's Polish business going forward."

Kulczyk’s business interests, particularly within the energy sector, are prominent across Poland, and therefore this agreement should be seen as a very positive step within the market, said broker Westhouse in a note.

"It should give Aurelian advantages over other E&P companies attempting to exploit shale gas plays within Poland, namely 3Legs Resources, San Leon Energy and FX Energy.

"Kulczyk’s commitment to Aurelian was also demonstrated recently, when it increased its holding in the company, following the disappointing flow test result from the Trzek-3 multi-fracced horizontal well on the Siekierki project," said the broker.

"Once Aurelian can demonstrate that it is able to complete and operate shale gas wells, and achieve commercial flow rates, the benefits of Kulczyk as a major shareholder, and today’s agreement, will become more apparent," concluded Westhouse.

In a separate statement today, Aurelian said its chief financial officer Mark Reid had resigned as CFO and also from the board to pursue other career projects.

Non-executive director John Matthews, who joined the Aurelian board in September 2010, has been appointed as acting finance director, also with immediate effect.

Last month, Aurelian reported a new gas discovery in the country, in the Krzesinki-1 exploration well, which was drilled on the same licence as the Siekierki tight gas field the group is currently developing.

Earlier this month, Aurelian’s largest shareholder, Toscafund Asset Management, bought 1.4 million more company shares and now owns 23.25 per cent of the company. Shortly prior to that, Kulczyk had increased its holding in Aurelian by 1.75 million shares to 68 million shares, giving it the current 13.77 per cent stake.

Aurelian Oil & Gas finance chief resigns

Mon, 28 Nov 2011 13:57:00 +0000

Mark Reid, chief financial officer of Aurelian Oil & Gas (LON:AUL), has resigned from the position and from the board, the company said in a statement this afternoon.

Reid has stepped down to pursue other career projects, the firm said.

Non-executive director John Matthews, who joined the Aurelian board in September 2010, has been appointed as acting finance director, also with immediate effect.

Chairman of the company John Conlin will take over from Matthews as chairman of the audit committee.

Conlin said this afternoon: "Mark has made an outstanding contribution to Aurelian since joining in 2009.

"The board and I are disappointed to lose him as a colleague and a director, and we wish him and his family well with his future plans."

Aurelian Oil & Gas and shareholder Kulczyk Investments in Polish cooperation agreement

Mon, 28 Nov 2011 07:31:00 +0000

Aurelian and Europa Oil and Gas say Horodnic-1 well is likely to be un-commercial

Tue, 15 Nov 2011 07:42:00 +0000

Aurelian Oil & Gas (LON:AUL) this morning told investors that the shale found in the latest Romanian appraisal well, Horodnic-1, is likely to be un-commercial.

The well was drilled to a depth of 1,660 metres to target an interval within the Sarmatian-Badenian section. This was present in the Voitinel-1 well, which is around 2.5 kilometres away.

Horodnic-1 encountered a gross interval of approximately 40 metres, Aurelian said. But Elevated gas readings were restricted to the topmost section.

According to Aurelian this indicates that the interval is likely to be un-commercial. The well is currently being plugged and abandoned.

Horodnic-1 is part of an exploration joint venture with state firm Romgaz and Europa Oil & Gas (LON:EOG), which own 37.50 per cent and 28.75 per cent respectively. Aurelian owns the remaining 33.75 per cent.

The well is expected to cost €2.5 million. Aurelian’s share of the costs will be €840,000.

"Whilst the primary objective section in Horodnic-1 was encountered, it is disappointing that it does not appear to contain commercial quantities of gas,” said chief executive Rowen Bainbridge.

“That said, this low cost commitment well has significantly increased our understanding of the Voitinel trend and also provided interesting reservoir indicators of a separate structure, that we are currently assessing using seismic acquired earlier in the year.”

Aurelian explained that Horodnic-1 encountered additional, well-developed, sands near target. This additional target was found below the regional Badenian Anhydrite.

It said that these sands form a target reservoir in a separate structure. The new target is currently being evaluated using the seismic data that was acquired earlier this year.

Bainbridge added: “The partner group will use the information gained from Horodnic-1 to further inform our appraisal activities and choice of subsequent well location on this interesting trend. A further update will be provided in the coming months."

In a separate statement Europa also confirmed that it is still in talks with a potential farm-in partner for its wholly-owned Brates Licences in Romania, which hosts the Barchiz prospect.

Aurelian Oil & Gas climbs after largest shareholder raises stake

Mon, 14 Nov 2011 09:55:00 +0000

EU focused explorer Aurelian Oil & Gas (LON:AUL) said that its largest shareholder Toscafund Asset Management has bought more shares and now owns more than 23 percent of the company.

Last Friday, Aurelian was notified by Toscafund that it had purchased nearly 1.4 million shares in the company. As a result, it now holds 101.56 million shares and a further 13.36 million shares owned under “financial instruments with similar economic effect to qualifying financial instruments”.

Toscafund’s total shareholding amounts to 114.92 million shares representing a 23.25 percent stake in Aurelian Oil & Gas.

Investors welcomed the news as shares in Aurelian rallied three percent to trade at 25.25 pence this morning, valuing the company at £124.8 million.

The share purchase by Toscafund came less than a week after another major shareholder in Aurelian Kulczyk Investments acquired 1.75 million shares in the company to increase its interest to more than 68 million shares, giving it a stake of 13.77 percent.

Back in October, Aurelian announced a new gas discovery in Poland, which was welcomed by City analysts.

The Krzesinki-1 exploration well, which has been drilled on the same licence as the Siekierki tight gas field, encountered a 65 metre gas column. According to Aurelian, the discovery contains between 10 and 20 billion cubic feet (bcf) of gas in place.

In a note to clients, finnCap analyst Will Arnstein said that, he believes that Krzesinki should be able to flow gas to surface without stimulation.

He noted that the 10-20 bcf gas in place estimates fell short of Aurelian’s pre-drill estimates of 60 bcf, but said the result was still encouraging. Repeating a ‘buy’ recommendation, Arnstein said that Aurelian shares remained ‘oversold’ on London’s AIM market.

Aurelian Oil & Gas major shareholder Kulczyk Investments raises stake to 13.77pct

Tue, 08 Nov 2011 08:56:00 +0000

Aurelian Oil & Gas (LON:AUL) reported that its major shareholder Kulczyk Investments has purchased more shares in the European focused explorer to increase its stake to 13.77 percent.

Yesterday, Kulczyk Investments acquired 1.75 million shares in the company, giving it a total shareholding of a little more than 68 million shares.

Dariusz Mioduski, who is a director of both Aurelian and Kulczyk, also holds a beneficial interest in 4.9 million shares or 0.99 percent of the company through Austrian private foundation Radwan Privatstiftung.

Following the latest share purchase, Mioduski holds a total 72.97 million shares representing 14.76 percent of the total voting rights in Aurelian.

Another director of Kulczyk Manoj Madnani also saw his non-beneficial interest increase to 13.77 percent.

Madnani’s beneficial interest remains at 145,924 shares, or 0.03 percent in the company.

Last month the company announced a new gas discovery in Poland, which was welcomed by City analysts.

The Krzesinki-1 exploration well, which has been drilled on the same licence as the Siekierki tight gas field, encountered a 65 metre gas column. According to Aurelian, the discovery contains between 10 and 20 billion cubic feet of gas in place.

In a note to clients, finnCap analyst Will Arnstein said that, he believes that Krzesinki should be able to flow gas to surface without stimulation.

He noted that the 10-20 bcf gas in place estimates fell short of Aurelian’s pre-drill estimates of 60 bcf, but said the result was still encouraging. Repeating a ‘buy’ recommendation, Arnstein said that Aurelian shares remained ‘oversold’ on London’s AIM market.

Shares in Aurelian have since rallied from 17.5 pence to yesterday’s closing price of 24.5 pence.

Today, Aurelian saw its shares add a further 2 percent to trade at 25 pence, giving the company a market cap of £126.55 million.

Aurelian Oil & Gas rises after major shareholder increases stake

Mon, 07 Nov 2011 08:57:00 +0000

Aurelian Oil & Gas (LON:AUL) said major shareholder Kulczyk Investments has increased its interest in the European focused oil and gas firm to 13.41 percent, leading to a two percent rise in its share price.

Kulczyk Investments acquired a further 10.65 million shares in Aurelian last Friday, taking its total shareholding to 66.3 million shares.

Dariusz Mioduski, who is a director of both Aurelian and Kulczyk, also holds a beneficial interest in 4.9 million shares or 0.99 percent of the company through Austrian private foundation Radwan Privatstiftung.

Together with his non-beneficial interest of 13.41 percent, Mioduski’s total interest in Aurelian has increased to 71.2 million shares representing 14.41 percent of the total voting rights in the company.

Another director of Kulczyk Manoj Madnani also saw his non-beneficial interest increase to 13.41 percent. Madnani’s beneficial interest remains at 145,924 shares, or 0.03 percent in the company.

Last month the company announced a new gas discovery in Poland, which was welcomed by City analysts.

The Krzesinki-1 exploration well, which has been drilled on the same licence as the Siekierki tight gas field, encountered a 65 metre gas column. According to Aurelian, the discovery contains between 10 and 20 billion cubic feet of gas in place.

In a note to clients, finnCap analyst Will Arnstein said that, he believes that Krzesinki should be able to flow gas to surface without stimulation.

He noted that the 10-20 bcf gas in place estimates fell short of Aurelian’s pre-drill estimates of 60 bcf, but said the result was still encouraging. Repeating a ‘buy’ recommendation, Arnstein said that Aurelian shares remained ‘oversold’ on London’s AIM market.

Shares in Aurelian have since rallied from 17.5 pence to yesterday’s closing price of 23 pence. Aurelian rose 2 percent to 23.5 pence on the back of today’s announcement, valuing the company at £116.1 million.

UPDATE: Aurelian Oil & Gas increases holdings in Cybinka and Torzym concessions, Poland

Fri, 21 Oct 2011 10:29:00 +0100

Adds broker comments.....

Aurelian Oil & Gas (LON:AUL) has upped its holdings in the Cybinka and Torzym concessions on the Polish reef oil play to 45 per cent each.

And the company told investors it will spud its first well on the Torzym concession in the first quarter of next year as it revealed details of the acquisition today.

The firm previously held 35 per cent of each of the concessions but has bought a further 10 per cent in each from Avobone Poland B.V, paying €337,724 for Cybinka and €368,177 for Torzym.

This amount is a reimbursement of Avobone Poland B.V.'s historical costs on the concessions, said the firm.

The firm plans to spud the first well on Torzym and is targeting gross 35 million barrels mid case STOIIP (Stock Tank Oil Initially In Place).

The results are expected by the end of the second quarter next year.

Aurelian's chief executive Owen Bainbridge said: "We are pleased to have acquired an additional 10 per cent interest in these concessions which contain a number of prospects which are play analogues with the nearby Lubitow and BMB oil fields."

He added that he was looking forward to the first quarter of 2012 and spudding the first well on Torzym, which if successful, would de-risk the 100 million barrels mid case STOIIP inventory currently mapped within the 220 sq km Cybinka-Torzym 3D seismic survey.

The exploration well at Torzym next year could be worth 14 pence a share net to Aurelian if it is successful, said Nick Copeman, analyst at Oriel Securities, which retains its 'buy' recommendation on the stock.

On today's acquisition announcement, Copeman said it looked like a sensible transaction which allowed Aurelian to gain greater exposure to the oil reef play at a modest cost.

Following the transaction, the firm said the concessions will be divided up as follows: At Cybinka, Aurelian Oil and Gas, the operator, will hold 45 per cent, S.N.G.N. Romgaz S.A., 30 per cent and Sceptre Oil and Gas Limited, 25 per cent.

At Torzym, Aurelian will have 45 per cent, S.N.G.N. Romgaz S.A will hold 30 per cent and Sceptre Oil and Gas Limited, 25 per cent.

On Tuesday this week, the firm revealed a new gas discovery in the Krzesinki-1 exploration well on the same licence as the Siekierki tight gas field in Poland.

Based on what it knows so far, Aurelian believes the discovery contains between 10 and 20 billion cubic feet of gas in place and testing of the Krzesinki-1 well will be complete by the end of this year.

Aurelian Oil & Gas increases holdings in Cybinka and Torzym concessions, Poland

Fri, 21 Oct 2011 07:35:00 +0100

Aurelian Oil & Gas (LON:AUL) has upped its holdings in the Cybinka and Torzym concessions on the Polish reef oil play to 45 per cent each.

And the company told investors it will spud its first well on the Torzym concession in the first quarter of next year as it revealed details of the acquisition today.

The firm previously held 35 per cent of each of the concessions but has bought a further 10 per cent in each from Avobone Poland B.V, paying €337,724 for Cybinka and €368,177 for Torzym.

This amount is a reimbursement of Avobone Poland B.V.'s historical costs on the concessions, said the firm.

The firm plans to spud the first well on Torzym and is targeting gross 35 million barrels mid case STOIIP (Stock Tank Oil Initially In Place).

The results are expected by the end of the second quarter next year.

Aurelian's chief executive Owen Bainbridge said: "We are pleased to have acquired an additional 10 per cent interest in these concessions which contain a number of prospects which are play analogues with the nearby Lubitow and BMB oil fields."

He added that he was looking forward to the first quarter of 2012 and spudding the first well on Torzym, which if successful, would de-risk the 100 million barrels mid case STOIIP inventory currently mapped within the 220 sq km Cybinka-Torzym 3D seismic survey.

Following the transaction, the firm said the concessions will be divided up as follows: At Cybinka, Aurelian Oil and Gas, the operator, will hold 45 per cent, S.N.G.N. Romgaz S.A., 30 per cent and Sceptre Oil and Gas Limited, 25 per cent.

At Torzym, Aurelian will have 45 per cent, S.N.G.N. Romgaz S.A will hold 30 per cent and Sceptre Oil and Gas Limited, 25 per cent.

On Tuesday this week, the firm revealed a new gas discovery in the Krzesinki-1 exploration well on the same licence as the Siekierki tight gas field in Poland.

Based on what it knows so far, Aurelian believes the discovery contains between 10 and 20 billion cubic feet of gas in place and testing of the Krzesinki-1 well will be complete by the end of this year.

Aurelian’s new Polish gas discovery encourages City analysts

Tue, 18 Oct 2011 08:45:00 +0100

The Krzesinki-1 exploration well encountered a 65 metre gas column. And according to Aurelian the discovery contains between 10 and 20 billion cubic feet of gas in place.

Aurelian Oil & Gas unveils new gas discovery in Poland

Tue, 18 Oct 2011 07:29:00 +0100

Aurelian Oil & Gas (LON:AUL) today revealed a new gas discovery in the Krzesinki-1 exploration well on the same licence as the Siekierki tight gas field in Poland.

It said that wireline logging has been completed and the well is being prepared for testing. Based on what it knows so far Aurelian believes the discovery contains between 10 and 20 billion cubic feet of gas in place.

The Krzesinki-1 testing will be complete by the end of this year.

"We are pleased to have discovered gas in the Krzesinki exploration well which is located 8 kilometres from our multi-fracced horizontal well (MFHW) Trzek-3,” said chief executive Rowan Bainbridge.

“The discovery is expected to be tested this year and we will provide a further update when this testing is complete. This well will also provide valuable data to assist our ongoing assessment of the wider Siekierki tight gas field.”

The Krzesinki-1 well was targeting a separate reservoir to Siekierki, although they are both in the same age rocks. The well encountered a 65 metre gas column, and the company said that 175 metres of core has been recovered.

Aurelian added that from the extensive quantity of core, it has so far yielded measured ambient porosities between 5 and 16 per cent, and ambient permeability between of 0.04 mD to 40.0 mD.

Additionally the company told investors that it has hired a specialist tight gas team, from industry consultancy AGR, to work alongside its in-house technical team. The AGR team will carry out a detailed, bottom up review of all existing data on the Siekierki field so that it can assist in the development of an updated appraisal plan for the Sierkierki project.

“We are also looking forward to working with AGR and believe that their significant experience with tight gas reservoirs will greatly assist our thinking as we work towards preparing a revised appraisal plan for the wider Siekierki structure,” Bainbridge said.

Meanwhile in Romania, on the Brodina licence, the Horodnic-1 exploration well has been spudded. The well follows up the Voitinel-1 discovery well which was drilled in 2009.

The well will test the late Badenian sandstones which successfully flowed gas in the Voitinel-1 discovery in 2009. It is being drilled around 2.5 kilometres to the southeast of Voitinel-1 and it is targeting a mid case gross gas-in-place of 52 billion cubic feet.

Bainbridge added: “In Romania we have also spudded Horodnic-1, the second well on the Voitinel trend following the 2009 discovery at Voitinel-1.

“We will provide an update on this well in late November or early December."

Aurelian Oil & Gas aims to unlock 'substantial value' at Siekierki gas project

Fri, 30 Sep 2011 09:40:00 +0100

Aurelian Oil & Gas (LON:AUL) told investors that there is “substantial value to unlock” in its flagship Siekierki tight gas project despite recent disappointing drilling results.

Earlier this month, Aurelian reported that initial data from the Trzek-3 well at Siekierki indicated that the recoverable resource could be between 4-8 billion cubic feet (bcf) rather than the 16-20 bcf that the company was expecting.

The combined flow rates from this well and the previously drilled Trzek-1 and Trzek-2 wells stood at around 6-8 million cubic feet per day.

This was due to “more complex geology than initially thought”, which Aurelian said means that it now has to find the optimum way to produce and commercialise this gas.

Siekierki currently has a mid-case gas-in-place (GIP) estimate of 1.6 trillion cubic feet (tcf).

Aurelian now aims to fully evaluate test results from Siekierki as well as results from the Krzesinki exploration well, which was spudded six kilometres away from the Trzek wells in June, before the end of the year.

The company today reassured investors that it will not allocate any further capital to this project until it is clear on the optimum way forward.

“In the coming months we will be fully evaluating the information we have on this project, including integrating the pressure build up data, the results from the Krzesinki exploration well and the seismic surveys we shot earlier in the year,” said chief executive of Aurelian Oil & Gas Rowen Bainbridge.

“These first two wells set the baseline of performance and we are in the process of identifying a number of areas in relation to well design, productivity and cost where we can improve in the future.”

At the end of the period, Aurelian had €95.3 million in cash after investing €23.94 million into its assets with the majority of these investments related to its activities in Poland, primarily exploration at Siekierki.

The cash balance decreased to €77.7 million by 22 September, however, Aurelian noted that it is expecting VAT repayments of €3.55 million.

During the first half of the year, Aurelian posted a pre-tax loss of €2.46 million, roughly in line with a loss of €2.55 million for the same period of 2010.

Besides the evaluation of Siekierki, Aurelian’s plans for the near term also include drilling the Horodnic-1 appraisal well in Romania, which is planned for October.

The well is targeting gross 52 bcf mid-case gas-initially-in-place (GIIP) and seeking to establish the commerciality of the Voitinel field.

In Slovakia, Aurelian is preparing to drill the Cierne-1 exploration well targeting 100 bcf mid-case GIIP with the aim of de-risking further gross resources of 400 bcf.

Both the Cierne-1 and the Sosna-1 well on Aurelian’s Cybinka/Torzym concessions in Poland are expected to spud in the first quarter of 2012.

Earlier this month, broker finnCap said that investors overreacted to the Trzek-3 test results, upgrading its recommendation for Aurelian from “hold” to “buy”. However, finnCap reduced its target price for the stock from 62 pence to 31pence.

Shares in Aurelian traded at 19 pence this morning, down 2.5 percent from Thursday’s close. The company currently has a market cap of £93.9 million.

Aurelian Oil & Gas share price fall 'excessive', says finnCap

Mon, 19 Sep 2011 13:14:00 +0100

Investors have overreacted to Aurelian Oil & Gas' (LON:AUL) disappointing flow test update on Friday, according to broker finnCap.

While noting that the flow test results from the second well (Trzek-3) at its flagship Sierkierki gas field in Poland were disappointing, analyst Will Arnstein said he believed the resulting 65 percent slide in the share price was "excessive".

In a note entitled "Picking up the pieces" the broker upgraded its rating for the stock from "hold" to "buy" although it did cut its price target from 62 pence to 31 pence.

Aurelian's shares are currently trading at 17.25 pence so this latest target price represents a 79 percent upside.

On Friday, the firm announced that initial data from the Trzek-3 Multi Fracced Horizontal Well (MFHW) indicated that the gas recovery from the appraisal well was lower than anticipated and the recoverable resource could be between 4-8 billion cubic feet rather than the 16-20 bcf that the company was expecting.

The company said it will continue flow testing until the end of this month when a further update on the well test, its ongoing appraisal plans and the subsequent timing of gas commercialisation from the Siekierki tight gas project will be provided as part of the interim results presentation.

The company's current projects span Poland to Bulgaria with exploration blocks in four countries - Romania, Slovakia, Bulgaria and Poland.

Looking at the firm overall, Arnstein said he believed that with a portfolio including around cash of €85 million (or 14p/sh), three wells likely to be capable of commercial production, a possible oil and gas discovery in southern Poland (Niebieszczany-1) and a valuable acreage, Aurelian clearly showed an asset base worth considerably more than the market value.

Aurelian Oil & Gas reports disappointing Trzek-3 flow test

Fri, 16 Sep 2011 08:58:00 +0100

Shares in Aurelian Oil & Gas PLC (LON:AUL) were hit in early trade after disappointing results from stabilised flow testing of the second horizontal well at its Siekierki gas field in Poland.

The group announced this morning that initial data from the Trzek-3 Multi Fracced Horizontal Well (MFHW) indicates that the gas recovery from the appraisal well is lower than anticipated and the recorerable resource could be between 4-8 billion cubic feet rather than the 16-20 bcf that the company was expecting. The well is also producing higher levels of water than expected.

Investors headed for the hills, sending the shares down more than 60 percent in early trade, to 18 pence.

Aurelian will continue flow testing until the end of September when a further update on the well test, its ongoing appraisal plans and the subsequent timing of gas commercialisation from the Siekierki tight gas project will be provided as part of the interim results presentation.

Chief executive Rowen Bainbridge said: "This news is disappointing and we are determined to understand the reasons why gas rates are lower and water rates higher than we had anticipated. Despite this, the Siekierki tight gas reservoir has a mid case of 1.6 trillion cubic feet of Gas In Place and covers approximately 150 square kilometres, with appraisal wells to date covering only 2.5 square kilometres of the reservoir.

“Until we understand these preliminary results, we are protecting the company's capital. Therefore, we are suspending plans for the Trzek-2 side-track and reviewing the possibility of gas sales from the existing three wells," he added.

The Siekierki project is on the Poznan licences which are 100percent held by Energia Zachόd Sp. z.o.o., a company owned 90 percent by Aurelian and 10 percent by Avobone NV.

The company's current projects span Poland to Bulgaria with exploration blocks in four countries - Romania, Slovakia, Bulgaria and Poland.

In Mid-April the group reported results for the full year to end-December 2010, saying cash available for continuing operations at year-end stood at €114.7 million, following two succesful fundraisings in the period, and that it had terms obtained for a €75.0 million credit facility.

Aurelian Oil & Gas appoints Piotr Rozwadowski as independent non-exec director

Thu, 15 Sep 2011 08:29:00 +0100

Aurelian Oil & Gas (LON:AUL) has appointed former Polish treasury minister Piotr Rozwadowski as an independent non-executive director of the company.

The 50-year-old, who has over a quarter of a century of experience of working in the Polish energy sector, began the new role yesterday (September 14).

Aurelian's chief executive Rowen Bainbridge said Rozwadowski's significant experience would be "invaluable" in helping Aurelian to carry out its growth strategy in Poland.

"In particular, Piotr's deep understanding of the Polish end user market for Aurelian's gas, together with his considerable expertise and knowledge of how the sector is regulated and managed further enhances our own industry knowledge and capability," he said.

Chairman John Conlin added: "This appointment also compliments very well the Polish industry knowledge and experience currently provided by Dariusz Mioduski our existing board member representing the interests of our Polish strategic partner Kulczyk Investments."

Rozwadowski has held senior positions with a number of companies in the polish electrical and power sectors and he is currently president of the board and managing director of Belos-PLP S.A - a leading Polish producer of components for overhead power lines.

He is also the former vice Minister of State for the Treasury of Poland where he was responsible for the energy and telecoms sectors and has also worked as a consultant for AT Kearney and Roland Berger Strategy Consultants.

Aurelian has licences in Poland, Slovakia, Romania and Bulgaria, and it is the operator of most of its licences.

Late last month, it announced that flow-testing had begun at its second horizontal well at the Siekierki gas field in Poland.

The company said it would provide a further update at the end of the stabilised flow test, which is expected to last 14 to 28 days.

The tests are being run at the firm's second Siekierki multi-fracced horizontal well (MFHW) known as Trzek-3.

This well is targeting a separate high to other wells in the Siekierki structure with a recoverable resource estimated at between 16 and 28 billion cubic feet, said the company.

Aurelian Oil & Gas: Toscafund Asset Management ups stake in firm

Tue, 13 Sep 2011 08:44:00 +0100

Central-Europe focused Aurelian Oil & Gas (LON:AUL) said that Toscafund Asset Management LLP had increased its stake in the company.

The acquisition took place on September 2, Aurelian told investors, and took Toscafund Asset Mangement's holding above the 12 percent threshold.

It now holds indirectly 60,192,644 shares in the firm and voting rights for 60,192,644 shares.

The deal relates to a total of 60,192,644 voting rights or 12.178 percent of Aurelian's total voting rights, it emerged.

The company has licences in Poland, Slovakia, Romania and Bulgaria, and it is the operator of most of its licences.

Late last month, it announced that flow-testing had begun at its second horizontal well at the Siekierki gas field in Poland.

The company said it would provide a further update at the end of the stabilised flow test, which is expected to last 14 to 28 days.

The tests are being run at the firm's second Siekierki multi-fracced horizontal well (MFHW) known as Trzek-3.

This well is targeting a separate high to other wells in the Siekierki structure with a recoverable resource estimated at between 16 and 28 billion cubic feet, said the company.

Six fraccs have been completed as planned without material mechanical issues, said Aurelian, as have well clean-up operations and a memory production log.

Drilling is also continuing on the first Siekierki South-West well - Krzesinki-1 and the target depth of 4,150 metres is expected to be reached early in the fourth quarter of 2011.

Krzesinki-1 is on trend with producing fields in areas of good permeability and is targeting net resources to Aurelian of 44 billion cubic feet with an upside of 465 bcf.

The Siekierki project is on the Poznan licences which are 100 percent held by Energia Zachόd Sp. z.o.o., a company owned 90 percent by Aurelian Oil & Gas and 10 percent by Avobone NV.

Aurelian Oil & Gas reveals start of flow-testing at second Siekierki multi-fracced well

Thu, 25 Aug 2011 13:03:00 +0100

Central-Europe focused Aurelian Oil & Gas (LON:AUL) announced today that flow-testing had begun at its second horizontal well at the Siekierki gas field in Poland.

The company will provide a further update at the end of the stabilised flow test, which is expected to last 14 to 28 days, it emerged.

The tests are being run at the firm's second Siekierki multi-fracced horizontal well (MFHW) known as Trzek-3.

This well is targeting a separate high to other wells in the Siekierki structure with a recoverable resource estimated at between 16 and 28 billion cubic feet, said the company.

Six fraccs have been completed as planned without material mechanical issues, said Aurelian, as have well clean-up operations and a memory production log.

Drilling is continuing on the first Siekierki South-West well - Krzesinki-1 and the target depth of 4,150 metres is expected to be reached early in the fourth quarter of 2011.

Krzesinki-1 is on trend with producing fields in areas of good permeability and is targeting net resources to Aurelian of 44 billion cubic feet with an upside of 465 bcf.

The Siekierki project is on the Poznan licences which are 100 percent held by Energia Zachόd Sp. z.o.o., a company owned 90 percent by Aurelian Oil & Gas and 10 percent by Avobone NV.

Earlier this month the firm told investors that drilling of the Niebieszczany-1 well - the first well on the Bieszczady block also in Poland - will be stopped short of the target reservoir due to high pressure, but 60 metres of promising formation in the well will be flow tested.

The operator Polskie Gornictwo Naftowe i Gazownictwo (PGNiG) and the Bieszczady partner group have decided to end drilling at 4,219 metres.

The partners plan to drill a follow-up well in the first half of 2012 which is designed for high pressures, thus enabling them to reach the original Niebieszczany-1 primary target areas containing up to 100 million barrels (gross) of oil, as well as potentially appraising a 60 metre test zone.

Aurelian Oil & Gas: A good buying opportunity, says Arbuthnot

Tue, 09 Aug 2011 13:21:00 +0100

Aurelian Oil & Gas today issued an operational update on operations in Poland. Broker Arbuthnot released a positive note, which said the firm's current price represented a good buying opportunity

Aurelian Oil & Gas says operator starting flow test on promising formations in Niebieszczany-1 well

Tue, 09 Aug 2011 08:24:00 +0100

Aurelian Oil & Gas PLC (LON:AUL) said that drilling the Niebieszczany-1 well, the first well on the Bieszczady block in Poland, will be stopped short of the target reservoir due to high pressure, but 60 metres of promising formation in the well will be flow tested.

The operator Polskie Gornictwo Naftowe i Gazownictwo (PGNiG) and the Bieszczady partner group have decided to end drilling at 4,219 metres.

The partners plan to drill a follow-up well in the first half of 2012 which is designed for high pressures, thus enabling them to reach the original Niebieszczany-1 primary target areas containing up to 100 million barrels (gross) of oil, as well as potentially appraising a 60 metre test zone.

The partners will now test 60 metres of formation that has already produced oil, condensate and gas in earlier drill stem tests. The flow test is expected to last 14 days.

Aurelian said its cost exposure on Niebieszczany-1 is limited to €3.5 million as its involvement is in the form of a fixed cost turnkey contract.

During an operational update in mid-June, Aurelian had already flagged that drilling progress had been slower than expected due to an over-pressured permeable interval between 3,845 - 3,848 metres which was required to be cemented to control the well, but that results from initial drill stem tests had been encouraging.

Operator PGNiG has 51 percent of the interest, wholly owned Aurelian and Gas Poland unit Energia Bieszczady 25 percent and Eurogas Polska 24 percent.

Aurelian also said that work on Trzek-3, the second Multi Fracced Horizontal Well (MFHW) on the Siekierki tight gas field in Poland, is going to plan and on budget with no material mechanical issues.

The company is currently working on final frac of a six frac programme and a 14 - 21 day stabilised flow test is expected to commence mid-August.

The first Siekierki South-West well, Krzesinki-1, has last been drilling at a depth of 2,007 metres. Target depth of 4,150 metres is expected to be reached early in the fourth quarter of 2011.

Krzesinki-1 is on trend with producing fields in areas of good permeablity and is targeting net resources to Aurelian of 44 billion cubic feet with an upside of 465 bcf.

The Siekierki project is located on the Poznan licences which are 100 percent held by Energia Zachόd, a company owned 90 percent by Aurelian and 10 percent by Avobone NV.

Aurelian Oil & Gas lifted as Arbuthnot weighs in with a buy recommendation and 84p price target

Mon, 04 Jul 2011 09:17:00 +0100

City broker Arbuthnot Securities this morning weighed in with a buy recommendation and 84 pence a share price target on Aurelian Oil & Gas.

UPDATE: Aurelian Oil & Gas says Krzesinki-1 spudded; will reach target depth in early Q4

Wed, 29 Jun 2011 15:00:00 +0100

Adds broker comments from Matrix....

Aurelian Oil & Gas (LON:AUL) this morning gave a progress report on Poland, where it is drilling for gas, while announcing it had completed the sale of its unwanted assets in Romania.

Krzesinki-1, around six kilometres south-west of Trzek wells one, two and three, was spudded on June 24 and will reach its target depth of 4,150 metres by early in the fourth quarter, the company said.

The structure being targeted lies on a trend to the north of a number of conventional fields developed by PGNiG and FX Energy.

As such, Aurelian expects Krzesinki will also be a conventional well, so horizontal drilling and fraccing are not planned.

The mid case net resources to Aurelian is 44 billion cubic feet with an “upside case” of 465 billion cubic feet.

Separately, the group said the sale of the non-core Romanian assets to private equity investor Raffles Energy would allow it to redirect capital expenditure.

The initial proceeds from the deal will be €6.85 million, though there could be further payments linked to the future exploration success.

Aurelian chief executive Rowen Bainbridge said: "We are pleased to have spudded the Krzesinki-1 well on time and look forward to reaching target depth early in the fourth quarter.

“Krzesinki-1 is an exciting prospect which, if successful, could add significant conventional gas to the existing 346 billion cubic feet net to Aurelian in the Siekierki tight gas project.

“We have now completed the refocussing of our business in Romania and look forward to moving ahead with the appraisal of Voitinel and our oil exploration activities in the Romanian Carpathians.

“The exit of our Romanian non-core interests has been achieved at a value that we are pleased with whilst also providing us with further upside based upon future exploration success."

Broker Matrix, which maintains its "hold" rating for the stock targeting a price of 58 pence (current price: 53 pence), said, in a note, there was no "material" new information in the announcement.

"The sale of non-core assets in Romania is positive, in our view, and should allow the company to focus on core areas. Key upcoming catalysts for the stock are fraccing (July 2011) and flow-test results (August 2011) from the Trzek-3 appraisal well on the company's Sierkierki project, as well as drilling results from the primary target on the Bieszczady exploration well."

Aurelian Oil & Gas says Krzesinki-1 spudded; will reach target depth in early Q4

Wed, 29 Jun 2011 07:36:00 +0100

Aurelian Oil & Gas this morning gave a progress report on Poland, where it is drilling for gas, while announcing it had completed the sale of its unwanted assets in Romania. Krzesinki-1, around six kilometres south-west of Trzek wells one, two and three, was spudded on June 24 and will reach its target depth of 4,150 metres by early in the fourth quarter, the company said.

Aurelian Oil & Gas poised to frac second horizontal well at Siekierki

Wed, 15 Jun 2011 11:51:00 +0100

Analysts reckon investors are in ‘standby mode’ as they wait for Aurelian to show it has mastered the technical challenges posed by its key Siekierki project.This morning the company said the latest horizontal well at the operation will be “fracced” and flow tested in the coming months.

Aurelian Oil & Gas making good progress with Trzek-3 on Siekierki gas field, Poland

Wed, 15 Jun 2011 07:40:00 +0100

Aurelian Oil & Gas PLC (LON:AUL) said it is making good progress with its seceond Multi Fracced Horizontal Well (MFHW) on the Siekierki tight gas field in Poland.

Trzek-3 was successfully drilled and completed with a cemented liner, and fraccing is expected to commence early July, taking up to six weeks to complete.

The group plans to start a stabilised flow test at Trzek-3 around mid-August, it said in an operational update.

The rig that drilled Trxek-3 will now move to the wellsite of Krzesinki-1, Aurelian’s first Siekierki South-West well. Spudding is planned for early July.

The group expects the well to reach target depth of 4,150 metres in early Q4 2011. Krzesinki-1 is on trend with producing fields in areas of good permeablity and is targeting net resources to Aurelian of 44 billion cubic feet with an upside of 465 bcf.

Aurelian said processing and interpretation of the recently acquired 2D seismic data on the Poznan Block 208 adjacent to the Siekierki project should be completed by the end of Q1 2012. The survey will be processed and interpreted to determine the block's prospectivity with a focus upon the Rotliegendes and Zechstein plays along trend from Siekierki.

The Siekierki project is located on the Poznan licences which are 100 percent held by Energia Zachόd, a company owned 90 percent by Aurelian and 10 percent by Avobone NV.

The partner group drilling the first well on Bieszczady block in Poland announced that the Niebieszczany-1 well, which spudded on October 14 2010, is currently drilling ahead at 3,946 metres with wire line logs having been taken over the interval to 3,840 metres.

Drilling progress has been slower than expected due to an over-pressured permeable interval between 3,845 - 3,848 metres which was required to be cemented to control the well.

In total, four drill stem tests, all recovering hydrocarbons, and six cores have now been taken in the Krosno sandstones. These tests and cores indicate the formation to be characterized by porosities of up to 7 percent with numerous fracture zones facilitating the flow of the hydrocarbons.

Longer term tests on all of these zones will be required to determine overall commerciality, however at this stage, the results from the drill stem tests are encouraging, Aurelian said, Cost exposure to the slow progress of this well has been mitigated due to the fixed cost nature of the contractor's turnkey contract.

The primary reservoir targets are expected between 4,000 metres and 4,800 metres and these remain the primary focus of the well which is targeting up to 100 million barrels (gross) of oil.

Interests in Bieszczady are: Polskie Gornictwo Naftowe i Gazownictwo, operator with 51 percent, wholly owned Aurelian and Gas Poland unit Energia Bieszczady with 25 percent and Eurogas Polska with 24 percent.

Aurelian Oil & Gas to finish sidetrack for Siekierki well Trzek-2 in Q4 2011

Thu, 21 Apr 2011 09:25:00 +0100

Aurelian Oil & Gas PLC (LON:AUL) expects to finish the sidetrack for the first multi fracced horizontal well on the Siekierki tight gas project in Poland in the fourth quarter of 2011.

The group had flagged mechanical problems during well clean up in March, delaying the stabilised flow rate. Gas inflow in six of the ten well bore sleeves is restricted. The full sidetrack process including flow testing will cost approximately €6 million for which the company is fully funded.

In an operational update, Aurelian said the second Siekierki multi fracced horizontal well, Trzek-3, has completed the drilling of its planned deviated pilot hole and encountered a 140 metre gas column, approximately 40 percent larger than the gas column experienced in the Trzek-2 pilot hole.

The completion of the Trzek-3 horizontal wellbore to be made ready for multiple hydraulic fracturing will use a cemented liner completion, which is a different methodology from that used in the original Trzek-2 horizontal well - which will help to avoid similar mechanical issues recurring in Trzek-3. Results of the post-frac well test are expected in early July.

The tie-in contract to allow the export of Siekierki gas to the national transmission grid has been signed with the operator. All planning and environmental approvals have been received and the application for construction approval has been submitted. This is expected to be received in June 2011, thus the target of first gas still stands for H2 2012.

Construction has started on the access road and well site for the Krzesinki-1 exploration well, which will test a prospect in the Greater Siekierki area in the west of Block 207 which is up dip of the proven gas in the Siekierki structure. Spudding is scheduled for Q3 2011.

Aurelian’s partner for the Bieszczady block reported that the Niebieszczany-1 well is currently drilling at circa 3,850 metres. During a short term drill stem test of a 42 metre zone, flows indicated potentially commercial rates of condensate and gas, and flow rates from a third test confirm the zone's prospectivity, the group said.

It is likely that a second well will now be drilled in early 2012 after interpretation of recently acquired seismic and integration of the current well data.

Aurelian also announced it is launching a new Carpathian conventional gas business targeting first gas in H2 2012.

As a result of the recent award of a100 percent interest and operatorship in the Poreba concession, which can be added to Aurelian's adjacent West Karpaty concession, where it is operator with a 60 percent interest, the company now has the necessary scale and funding to commence this new venture.

The business will target relatively shallow gas prospects of between 20-150 bcf with well costs estimated at between €3 and €5 million. Furthermore the business is located close to existing infrastructure and will have a low cost, quick-to-market business model.

One work over well and one exploration well, both of which are funded, are planned over the next two years.

Chief executive Rowen Bainbridge said: "We are making progress to understand the Siekierki reservoir and to develop production and cash-flow by the second half of 2012. Our Trzek-2 well has shown that horizontal wells can produce from tight sands such as Siekierki, and we now need to optimise the completion, frac design and execution to crystallise the potential of this project. In the Greater Siekierki area we are looking forward to the spudding of our Krzesinki, vertical well in H2 2011.

Separately, Aurelian reported results for the full-year to end-December 2010, a period which saw a significant improvement in the company’s financial position.

In addition to two equity placings which raised €132.4 million after fees, it obtained terms for a €75.0 million credit facility. Aurelian now has the funds to develop its key Siekierki tight gas project through to first gas in 2012 and to undertake a comprehensive exploration and appraisal drilling program in its core areas through 2011/2012.

Pretax loss widened to €9.68 million from €2.32 million, mainly due to higher exploration costs and administrative expenses.

Aurelian shares recover as investors look on the bright side after well delay

Fri, 25 Mar 2011 14:16:00 +0000

It has been a rollercoaster day for investors in Aurelian Oil & Gas, whose shares plunged as much as 13 per cent in a frantic early session after the company revealed it been hampered by delays and technical hitches in Poland. However closer inspection of the statement appeared to steady investors’ nerves and by early afternoon the stock had clawed its way back to 69.75 pence – flat on the day.

Aurelian Oil & Gas starts flow-test on Trzek-2 well at Siekierki project in Poland

Fri, 25 Mar 2011 08:01:00 +0000

Aurelian Oil & Gas PLC (LON:AUL) said the first multi fracced horizontal well on the Siekierki tight gas project in Poland, Trzek-2 , has begun its stabilised flow rate test, and drilling the second, Trzek-3, is currently running ahead of schedule.

The stabilised flow rate test was delayed by two weeks due to mechanical problems during well clean up. Gas inflow in six of the ten well bore sleeves is currently restricted, which the company believes is either caused by clean up debris lodged in sleeve ports or sleeve ports being temporarily closed.

Aurelian is confident that the issue is not related to reservoir quality as tracers have confirmed that gas was recovered from all ten fracced zones during the initial production test. Furthermore, well bore logging has already shown positive reservoir characteristics along the full length of the horizontal section.

If the well bore sleeve mechanical problems persist after the end of the stabilised flow test, Aurelian will undertake remedial work.

The stabilised rate at the end of the 14-21 day test is likely to be less than the 8 million cubic feet per day (mmscf/d) that the company had originally expected, it said. However, good reservoir quality indicators and expected lower production decline rates means that Aurelian should still recover 16-28 billion cubic feet (bcf) from this well and 346 bcf (net) from 20 wells across the full project.

At the second multi fracced horizontal well on Siekierki, Trzek-3, Aurelian’s team is setting casing at 3,699 metres along the hole after 57 days, prior to drilling into the Rotliegendes gas reservoir.

At the same depth in the drilling of Trzek-2, the company had been drilling for 90 days. This improved performance is as a result of the company implementing the learning it obtained during the drilling of Trzek-2.

During April, Aurelian will provide a further update on the thickness of the gas column and the reservoir quality that it encounters in the Rotliegendes reservoir. As reported previously, the vertical pilot hole and the horizontal section of Trzek-3 are expected to be completed by late May or early June 2011. Hydraulic fracturing operations will then follow, with stabilised flow test results expected by late June or early July.

Trzek-3 is targeting a separate high in the Siekierki structure with a recoverable resource estimated at between 16 and 28bcf.

Chief executive Rowen Bainbridge said: "Whilst the mechanical performance of the down hole and completion equipment on Trzek-2 has been disappointing, we believe that this can be corrected, will not recur in the future and will not impact the potential of our Siekierki tight gas project.

“The Trzek-3 well is performing better than we had hoped and we will have stabilised flow rates from both MFHWs by the end of June/beginning of July which will help us optimise the development of this key project,” he added.

The Siekierki tight gas project is hosted on the Poznan licences which is held by Aurelian’s 90 percent owned subsidiary Energia Zachόd. Avobone NV owns the other 10 percent of the subsidiary.

Aurelian also announced that the first well drilled in the Bieszczady block in Poland, Niebieszczany-1, has encountered an active oil and gas system in a zone above the primary targets. The well is targeting prospective resources of up to 100 million barrels of oil.

The well is currently drilling at 3,700 metres and is still to reach three primary oil targets located between 4,000 and 4,800 metres.

During drilling from 1,000 metres to the current depth excellent oil and gas shows have been encountered throughout which appear to be associated with fracture zones. Wireline logs were taken over the interval of 1,000 metres to 3,226 metres prior to setting casing and a total of 46 metres of core has been cut in three separate zones. In addition, two short term drill tests have recovered oil and gas.

Acquisition of a further 300 kilometres of 2D seismic to the north and east of the existing 2D area is now complete, giving coverage of 40 percent of the Bieszczady block. A second well is planned to commence in late 2011/early 2012 after interpretation of this seismic and integration of the current well data.

Bieszczady is operated and 51 percent held by Polskie Gornictwo Naftowe i Gazownictwo, Aurelian subsidiary Energia Bieszczady holds 25 percent, and Eurogas Polska holds the remainder.

Finally, Aurelian reported that Henryk Jesierski, the chief geologist at the Polish Ministry of Environment, confirmed at a conference held at the British Embassy in Warsaw in mid-March 2011 that Poland will not be blocking or restricting unconventional and shale gas development.

Aurelian Oil & Gas appoints John Smallwood as exploration director

Wed, 23 Mar 2011 08:02:00 +0000

Aurelian Oil & Gas (LON:AUL) has appointed Dr John Smallwood to the board as exploration director with effect from May 16 2011.

Smallwood, aged 38, joins Aurelian after spending 15 years with Hess Corp (NYSE:HES). He recently completed a successful four year tenure as exploration manager in Australia during which his team made 17 discoveries. He has also had success with Hess in the North Atlantic Margin, Africa and Asia.

Aurelian said the new director brings a technical depth and experience to Aurelian's exploration function that will significantly enhance the company's ability to execute its comprehensive exploration and appraisal programme over the next two to three years.

It also announced that Michael Seymour has decided to retire as a non-executive director at the forthcoming AGM on May 25. He will continue as a consultant.

Chief executive Rowen Bainbridge said: “As an exploration led company, this is a critical role and we now have an explorer with an excellent track record. John's appointment significantly increases the likelihood of Aurelian successfully expanding and developing our Siekierki tight gas project and achieving exploration success throughout our portfolio."

At the end of February, the company completed fracture stimulation of Trzek-2, the first multi-fracced horizontal well (MFHW) on the Siekierki tight gas project in Poland, and reported very promising initial production rates.
The Siekierki tight gas project is hosted on the Poznan licences which is held by Aurelian’s 90 percent owned subsidiary Energia Zachόd. Avobone NV owns the other 10 percent of the subsidiary.

Aurelian Oil & Gas: Successful Trzek-2 well shows significant uplift in initial production from Siekierki

Fri, 25 Feb 2011 07:33:00 +0000

Aurelian Oil & Gas (LON:AUL) has completed fracture stimulation of Trzek-2 and it has subsequently achieved an initial production rate of 17 million standard cubic feet per day (mmscf/d).

This is the first multi-fracced horizontal well (MFHW) on the Siekierki tight gas project in Poland.

In Trzek-2, ten separate zones were successfully fracture stimulated along the 1,350m of horizontal wellbore.

Initial production was recorded at 17mmscf/d during a short term test, this compares very favourably to the 7.5mmscf/d production rate recorded in the standard vertical Trzek-1 well in 2007.

"Aurelian is the first company to successfully use Multi Frac Horizontal Wells in Tight Gas reservoirs in Poland and to produce a very good initial flow rate is a great result,” chief executive Rowan Bainbridge said.

“This represents an important step forward in the delivery of Aurelian's plan to develop our 346 billion cubic feet project at Siekierki.”

Aurelian will now carry out clean-up operations and shut-in the well for two days, after that Trzek-2 will be flowed for 30 days. It will establish the well’s stabilised flow rate and its ultimate recovery levels, based on the test.

Meanwhile the second Siekierki MFHW, Trzek-3, is currently being drilled at around 2,500 metres in the vertical pilot section.

The horizontal section of Trzek-3 is scheduled to be completed by May or early June 2011. It will then undergo hydraulic fracturing and it will be flow-tested by late June or early July.

Trzek-3 is targeting a separate part of the Siekierki structure, which has an estimated recoverable resource estimated of 16 to 28 billion cubic feet.

The Siekierki tight gas project is hosted on the Poznan licences which is held by Aurelian’s 90 percent owned subsidiary Energia Zachόd. Avobone NV own the other 10 percent of the subsidiary.

Aurelian agrees €6.3 mln deal to sell non-core Romanian assets to Raphael Group

Fri, 04 Feb 2011 07:44:00 +0000

Aurelian Oil & Gas (LON:AUL) has agreed to sell its non-core assets in Romania, with a structured deal starting at about €6.3 million.

Last year the company formulated a new strategy. It decided to focus on two principal areas, Southern Permian Basin in Poland and the Carpathian Thrust Fold (CTF)belt which spans Southern Poland, Slovakia and Western Romania. Since then it has been looking at ways to dispose of its asset outside these areas.

This morning it unveiled a deal to sell the remaining Romanian interests (outside the CTF belt) to the Raphael Group, a large natural resource focused Private Equity investor. Aurelian agreed the deal with Raphael subsidiary Raffles Energy Netherlands.

"Last year we set out a plan to refocus our business in Romania and we have now achieved this,” chief executive Rowen Bainbridge said.

“We look forward to moving ahead with the appraisal of Voitinel and our oil exploration activities in the Romanian Carpathians.

“The exit of our non-core interests has been achieved at a value that we are pleased with and it also provides us with further upside based upon the future exploration success of AOGR."

Initially Aurelian will receive between €6.3 and €6.8 million. It will get €5.3 million upfront in cash, followed by a second €1 - €1.5 million payment subject to final working capital and other adjustments.

Furthermore Aurelian could receive more payments from Raffles if it finds new resources on the properties and subsequently brings them to production.

This deferred element would see Aurelian get €50,000 for every billion cubic feet (Bcf) of gas or €300,000 for every million barrels of oil. Specifically the payment relates to Raffles’ share of proved and probable reserves in the relevant field development plans.

This payment would be made once the new discovery begins production.

In total Aurelian is selling six assets - the Bilca gas project (part of the larger Brodina concession, the Suceava Concession, Bacau North A, Bacau North B, the Brodina exploration Area and the Cuejdiu concession area.

Each area is being explored through joint ventures with other groups. Aurelians interests range from 33.75 percent in the Brodina exploration area to 62.5 percent in the Bilca gas project.

The asset disposal is expected to be completed in the next 2-3 months.