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 good properties of Trzek-2 further de-risk Siekierki gas project
Aurelian Oil & Gas (LON:AUL) said the Trzek-2 well has a larger gas column with better porosity, improved gas concentration and better permeability than the other wells at the Siekierki field.
Trzek-2 is the first multi fracced horizontal well to be drilled in Poland.
The company has completed wireline logging and core testing on the vertical section and the horizontal drilling phase is now underway.
"We are pleased with the coring results from Trzek-2 ... which further de-risks our Siekierki Tight Gas Project and vindicates the internal technical methodology for predicting 'sweet spots' in the reservoir,” chief executive Rowen Bainbridge said.
“The pilot section of Trzek-2 was drilled 14 days faster than Trzek-1."
“it is encouraging that the two wells drilled by Aurelian have both identified areas of the reservoir with better properties than the four wells drilled between 1973 and 1985.”
The sidetracked horizontal well will be drilled 1,500 metres towards the Trzek-1 well. It is planned to encounter the Rotliegendes reservoir 300 metres from the current well.
Subsequently Aurelian’s contractor, Halliburton, will carry out frac and flow testing in December 2010.
The Siekierki gas project is hosted on the Poznan license in the Southern Permian Basin, which is one of the company’s core areas.
Aurelian has two core areas where it is focusing its exploration, appraisal and development activities. The Southern Permian Basin in Central and Western Poland and the Carpathian Thrust Fold belt in Southern Poland, Slovakia and Western Romania.
This morning Aurelian also reported that the first of three wells has spudded on the Polish Bieszczady block in the Carpathian Thrust Fold Belt.
The well is targeting a 100 million barrel oil prospect, with a number of proven production reservoirs are being targeted.
The well’s primary prospect will be drilled to a maximum depth of around 4,800 metres.
The results are expected in the first quarter of 2011.
Elsewhere the non-core Bulgarian joint venture, with JKX Oil & Gas (LON:JKX), has spudded the next exploration well.
The ‘Shkorpilovtci South West R-01’ well is targeting prospective resources of 20-30 billion cubic feet of gas. Results are expected in November.
Earlier this month the ‘Staro Oryahovo South R-01’ exploration well was plugged and abandoned, after testing showed the target to be 'water wet’.
FinnCap analyst Will Arnstein highlighted that the results were positive, but noting that wasn’t unexpected.
“Better reservoir properties at Trzek-2 location provide encouragement that results from the well will prove the commerciality of the field”, Arnstein said.
The analyst believes that December’s flow test results will be critical.
Arnstein rates Aurelian as a ‘buy’ with a 65p target.
