www.aurelianoil.com
Aurelian Oil & Gas PLC, was founded in December 2002, and is focused on the re-emerging Central and Eastern European oil and gas markets, the oldest producing oil province in the world.
Current projects span the region from Poland to Bulgaria, with production in Romania, a deep appraisal well drilled on a large structure in Poland in March 2007 to be developed with a further horizontal well to be drilled in 2010, together with exciting exploration prospects including projects in four countries, Romania (4 blocks), Slovakia (3 blocks), Bulgaria (2 blocks) and Poland (14 blocks). Aurelian is the operator in all of these except Bulgaria.
Europa and Aurelian Oil & Gas see potential for 9bcf gas per well on Voitinel/Solca trend
Europa Oil & Gas (LON:EOG) shares climbed 7% this morning as its Romanian JV with Aurelian Oil & Gas (LON:AUL) was boosted further by positive flow-testing. The partners announced that the ‘1400 Sand’ in the Voitinel-1 well has been perforated and flowed gas at 10,000scf/d (standard cubic feet per day), with no water production. These latest results follow Voitinel-1’s successful fraccing, which led to a 67% improvement in flow-rates.
According to Aurelian, assuming successful fracture stimulation, it may be possible to recover up to 6bcf (billion cubic feet) per well from the 1650 sand, and up to 3bcf per well on the 1400 sand. Also, Aurelian believes that the wider Voitinel/Solca structural trend could have gas-in-place volumes up to 400bcf.
“This test confirms free gas in the 1400 sand at Voitinel which will be incorporated into the development plan for the discovery, of which the main 1650 reservoir, successfully fracced in May, currently holds the majority of potential reserves,”Europa MD Paul Barrett commented.
The partners intend to appraise the 1400 Sands further in future wells, where core can be obtained and fracture stimulation undertaken to increase production rates. In May, the partners announced that the 1650 Sand in Voitinel-1 flowed at a stabilised rate of 2.5 million standard cubic feet per day (scf/d) three days after fraccing - a 67% improvement on October 2009’s rate.
The partners highlighted that the 1400 sand in the Voitinel-1 well accounts for approximately 12% of total gas-in-place across the wider Voitinel/Solca trend.
Europa holds a 28.75% interest in the EIII-1 Exploration Area of the Brodina Block, which hosts the Voitinel/Solca trend, Aurelian Oil & Gas (AIM: AUL) has a 33.75% interest, while Romanian oil and gas company Romgaz SA owns the remaining 37.50%.
The partners have already completed the reprocessing of available seismic, Voitinel-1 well results, and the structure is currently being remapped. The mapping results should be available in July/August and they will subsequently enable the JV to provide a more accurate assessment - including revised reserve estimates - of total gas-in-place across the trend.
Additionally, Prospectiuni has been appointed to acquire 60km of 2D seismic, principally to detail the Solca trend, to enable site selection for a possible well in Q4 2010.
“Despite our very strong acreage position in the play, we feel we have only scratched the surface so far in assessing the prolific Oligo-Miocene oil fairway of the Romanian Carpathians, which has produced 5 billion barrels to date.”
Elsewhere in Romania, a seismic exploration program is underway, at three prospective areas within the northern and central areas of the Bacau Blocks. The seismic program will cover 70km across the two blocks, 44km on Bacau North and 26km on Bacau/Lilieci.
Europa has a 19% interest in the Bacau North block, alongside Aurelian with 41% and Romgaz with 40%, whilst the Bacau Lilieci block is being explored between Aurelian (60%) and Romgaz (40%).
Europa highlighted that the partners have identified additional leads, following the review of the block’s over-thrust area, for the first time, and therefore the survey is now targeting gas-in-place leads of 147bcf - an increase of 119% from the previously announced 67bcf.
According to Europa, the “two areas are prospective for Sarmatian biogenic gas prospects in the north eastern area and one for thermogenic gas/condensate in the overthrust area of the East Carpathians”. The survey results are expected by the end of August 2010, and the partner anticipate that they will further define prospects for drilling in the future.
“The seismic program this year across the Bacau and Cuejdiu Blocks will go a long way to providing a strong exploration prospect flow for the next few years. The first of our oil prospects, Barchiz, is expected to be drilled in the Brates Block later this year”, Barrett added.
