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.
Aurelian Oil & Gas poised to begin development phase at 346bcf Siekierki tight-gas project
Aurelian Oil & Gas (LON:AUL) has mobilised the drilling rig to its flagship Siekierki tight gas project in Poland, with the spudding of the first multi-fracced horizontal well slated for 1 July. The spudding will mark the start of the reservoir’s development phase, which targets 346bcf of recoverable gas net to Aurelian.
The development’s major service contracts have now been awarded, with Aurelian hiring Baker Hughes and Halliburton to provide key drilling services. Baker Hughes will conduct directional drilling, logging-while-drilling and wireline logging and Halliburton will provide completion hardware and fracture services.
"We are on track and delivering against our operational schedule. At our flagship Siekierki project in Poland we are pleased that the rig is mobilising as planned and that overall project planning and permitting is on schedule. Baker Hughes and Halliburton bring significant experience and expertise in tight gas developments,”
Furthermore, Aurelian highlighted that planning and permitting remains on schedule, with sites for two pilot stage appraisal wells being approved, and the Environmental Impact Assessment for the Gas Processing Facility and Flowlines expected to be submitted shortly.
The company expects to receive a Construction Permit in Q4 2010, enabling construction to begin in 2011, subsequently leading to gas sales in the second half of the year. Aurelian said that it intends to order the Processing Facility’s long lead items at the end of June.
Aurelian has a 90% interest in Siekierki, through its stake in Energia Zachod Sp. z.o.o, which owns 100% of the Poznan licences which host the project. The remaining 10% of Energia Zachod is owned by Avobone NV.
Also today, Aurelian reported the results of testing in Romania where flow rates from the 1400 sand in Voitinel-1, have increased the company’s confidence in creating a successful commercial development in the Voitinel/Solca trend.
The company has been exploring the Voitinel/Solca trend through a partnership with Europa Oil & Gas (LON:EOG) and Romgaz. This morning, 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.
Aurelian also provided details of a 2D seismic program, which is now underway in Romania. The program is targeting 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.
Aurelian owns a 41% interest in Bacau North and 60% interest in Bacau Lilieci, Romgaz hold 40% in each license, while Europa has a 19% stake in Bacau North.
Across the two blocks, the partners have identified additional leads, following the review of the block’s over-thrust area, for the first time, and therefore the seismic survey is now targeting gas-in-place leads of 147bcf - an increase of 119% from the previously announced 67bcf.
