Aurelian Oil & Gas makes gas discovery in Romania at Climauti-1

Aurelian Oil & Gas (AIM: AUL) told investors of a new gas discovery in Romania, after the Climauti-1 well encountered a gas bearing reservoir in Suceava Block. The company believes that the reservoir should yield approximately 2 billion cubic feet (Bcf) of recoverable gas reserves as well as increasing its production by 18% over a seven year life.

The discovery builds on the company’s recent success in the country, where Aurelian recently announced the successful fracture stimulation and upgrade at the Voitinel discovery.

"We are pleased that our activities in Romania continue to progress in line with the plans we outlined earlier in the year”, Aurelian chief executive Rowen Bainbridge commented. “We are also encouraged that early production and cash-flow is expected from this reservoir and this will boost the company's forecast production by 18% over the life of the well.”
 
Aurelian noted that the newly discovered reservoir is on the same interval as the producing Vicsani-1 well, located 3km to the south west. Climauti-1 encountered the gas column, in Sarmatian sands, at a depth of 456.5-463.6m, with 7.1m gross pay and 6.3m net pay, the company said that the column will be perforated and completed for production. 

Subsequently, the rig will be demobilised, and a flow test will be carried out on the new discovery, once the testing equipment is freed-up from the Voitinel-1 well.

Climauti-1 will be tied into the Bilca gas plant and production is expected to commence in Q4 2010.

The Suceava Block, which hosts Climauti-1, is being explored and developed through a 50:50% joint venture partnership between Aurelian and Regal Petroleum (AIM: RPT).

“In the coming weeks I look forward to providing you with further updates on the testing of this well and the testing of the 1400 sand in our Voitinel-1 discovery", Bainbridge added.

The Voitinel-1 discovery was initially made in 2009, and last month, on 24 May, Aurelian reported that it had successfully completed fracture stimulation of the well, with the ‘1650 sand’ showing a stabilised flow rate of 2.5 million standard cubic feet per day (mscf/d) - a 67% improvement on the rate at October 2009.

Consequently, the company believes that the Voitinel structure could now have the potential to produce up to 6 billion cubic feet (Bcf) per well at an average rate of 2.5mscf/d for the first year.

“The successful fracture of the 1650 sand in Voitinel-1 is the first stage in appraising the commercial development of the Voitinel/Solca trend which could have up to 400 bcf of gas in place”, CEO Bainbridge had said. “We are now preparing for stage two of the appraisal process and are mobilising equipment for a test, next month (June), of the 1400 sand in Voitinel-1”.

Aurelian holds a 33.75% interest in the EIII-1 Exploration Area of the Brodina Block, which hosts the  Voitinel/Solca trend, which is being appraised in partnership with Europa Oil & Gas (AIM: EOG) who have a 28.75% interest and a domestic Romanian oil an gas company, Romgaz SA, owns the remaining 37.50%.

Also last month, Aurelian updated investors on its busy on-going work programme, across its portfolio in central Europe. The company intends to drill the first multi-fracced horizontal well at its flagship Siekierki gas project - located in Poland - in June 2010. Also in Poland, the company plans to drill the first Bieszczady exploration well, in the Carpathian Thrust Fold belt, in October.