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 sees minimal financial impact from disappointing Bulgarian JV
Aurelian Oil & Gas (LON:AUL) said the disappointing exploration results in Bulgaria will have minimal impact on the company’s finances.
Earlier today, JKX oil & Gas (LON:JKX) reported that the ‘Staro Oryahovo South R-01’ exploration well is being plugged and abandoned, after testing demonstrated the target was 'water wet’.
"Whilst this news is disappointing, our financial exposure to this two well programme is minimal as a result of a carried interest arrangement,” Aurelian chief executive Rowen Bainbridge said.
“We will await the result of the second well and then decide upon the nature of any further activities in Bulgaria."
JKX has mobilised the rig will to the ‘Shkorpilovtci South West R-01’ location where it will drill the next well, which will test an amplitude supported channel sand complex of Late Eocene age.
According to Aurelian this feature has prospective resources between 20 and 30 billion cubic feet (Bcf).
Bainbridge emphasised that the Bulgarian joint venture is considered ‘non-core’ for the company.
Aurelian devised a new strategy at the end of 2009, after Bainbridge’s newly assembled management team reviewed the company’s assets.
Aurelian is focusing its exploration, appraisal and development activities in two core areas:
The Southern Permian Basin in Central and Western Poland and the Carpathian Thrust Fold belt in Southern Poland, Slovakia and Western Romania.
At the Siekierki gas project - in the Poznan license on the Southern Permian Basin – the company recently took a major step forward.
Last week Aurelian said it found a 100 metre gas column in Trzek-2 Multi Fracced Horizontal Well (MFHW), which was the first of its kind in Poland.
The well encountered the gas in the top reservoir within the vertical section of Trzek-2.
"Encountering the estimated 100 metre gas column, on schedule and on budget, is a major step forward,” Bainbridge said last week.
The well represents a major step in the development of the Siekierki Tight Gas Project, where Aurelian already has a resource of 346 billion cubic feet (Bcf) of gas.
Aurelian also reported a new €75 million credit facility, saying the company is now fully funded for its forward drilling programme.
Trzek-2 is targeting approximately 16 - 28bcf of recoverable gas reserves.
Now it has tested the vertical section Trzek-2 will be sidetracked and drilled horizontally, towards Trzek-1’s 91 metre gas column.
Trzek-2’s ‘fraccing’ and flow testing is scheduled for completion in December.
Elsewhere at the Bieszczady licence on Carpathian Thrust Fold Belt, Aurelian has now begun its 300km 2D seismic survey.
The company said it has already received ‘good quality information’ from the survey.
“In the Carpathians, we are increasing to 40% the 2D seismic coverage on our highly prospective Bieszczady block where we will be spudding our first well in October targeting prospective resources of 100 million bbs of oil (gross),” Bainbridge said.
Bainbridge emphasised that the coming months promise to be the most exciting in Aurelian’s history.
