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 says it is progressing well in Poland
Aurelian Oil & Gas (LON:AUL) chief executive Rowen Bainbridge said the key Polish projects are both progressing well.
In an operations update Bainbridge highlighted results from the Siekierki Tight Gas reservoir and the Bieszczady Carpathian oil prospect are due in Q4-2010 and Q1-2011 respectively.
The update also covered the company’s operations in Bulgaria, Romania and Slovakia.
“Aurelian continues to execute its strategy satisfactorily, and in line with key milestones,” Bainbridge commented. “Furthermore, the extensive seismic programme ongoing throughout our Central European portfolio will enable us to further develop and expand our prospect inventory.”
At Siekierki, the Trzek-2 multi-frac horizontal well is progressing on track with casing currently being set at 3,400m, with the top of the reservoir is predicted at 3,700m. Additionally, planning and permitting is on schedule to enable Aurelian’s first gas production by the end of 2011.
A spud date has been set in October for the Bieszczady well, on Carpathian Thrust Fold Belt Core Area. The well will target up to 100 million barrels (mmbbls) of oil.
The Bieszczady well is designed to de-risk other on-trend prospects, with similar size to Bieszczady.
Aurelian also plans to acquire additional seismic data over three other core prospects in Poland.
The company plans to conduct a combination of 3D and 2D seismic, with 220km² covering the Cybinka and Torzym prospects with 3D; 80km of 2D seismic over Kalisz; and 136km 2D across the Karpaty East prospect.
Notably, the survey over Karpaty East on the Carpathian Thrust Fold Belt aims to confirm a 236 million barrel drillable prospect.
The company also updated investors on its activities in Bulgaria, where Aurelian’s joint venture partner, JKX Oil & Gas (LON:JKX), recently spudded the first of two wells on the B1-Golitza license. Through the drilling programme JKX is targeting two 20-30 billion cubic feet (Bcf) gas prospects.
Aurelian highlighted that a third similar sized prospect may also be drilled by the partners next year, subject the success of the initial two well programme.
Acting as operator JKX has a 40% interest in B1-Golitza, Aurelian owns 30% and Bulgaria’s Sorgenia E&P hold the remaining 30% stake.
On the Brodina concession, in Romania, Aurelian has upped its - high-case - GIIP (Gas Initially In Place) assessment from 400Bcf to 415Bcf. The assessment follows newly reprocessed seismic data, the incorporation of the Voitinel-1 test results and a review of results from Romgaz's adjacent concession.
Furthermore, the company has identified a new prospect to the west of the Voitinel well, which indicates potential GIIP upside. The prospect was identified with the recently acquired 60km 2D data, as well as information from Romgaz's Paltinu-102/103 wells.
Additional leads have also been identified on the Bacau and Cuejdiu concessions, following 200km of 2D seismic.
At Bacau, the overthrust area of the block was surveyed for the first time. Aurelian confirmed that it has identified additional leads, and the survey will have been interpreted by the end of October 2010. At which point is hopes to further define these prospects for drilling.
Early interpretation of the Cuejdiu 2D survey identified three leads, for 50-100 mmbbls gross.
The company said it is ‘very encouraged’ with the early indications, although more work is required to further define these leads into drillable prospects.
The Romanian projects are being explored in partnership with Europa Oil & Gas (LON:EOG) and the country’s state-owned natural gas producer, Romgaz. The proportionate interests in the prospects vary from block to block. Aurelian’s stake-holding ranges from 37.75% in the Brodina block to 60% in the Bacau block.
In Slovakia, Aurelian and its partners recently signed a four-year extension on three licenses. A comprehensive 2D seismic programme, over 450km, is planned and it will be followed up with a three-well exploration programme.
Aurelian is acting as the operator of the licenses and it has a 50% stake, with JKX and Romgaz each holding 25%.
