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 and Europa Oil and Gas say Horodnic-1 well is likely to be un-commercial
Aurelian Oil & Gas (LON:AUL) this morning told investors that the shale found in the latest Romanian appraisal well, Horodnic-1, is likely to be un-commercial.
The well was drilled to a depth of 1,660 metres to target an interval within the Sarmatian-Badenian section. This was present in the Voitinel-1 well, which is around 2.5 kilometres away.
Horodnic-1 encountered a gross interval of approximately 40 metres, Aurelian said. But Elevated gas readings were restricted to the topmost section.
According to Aurelian this indicates that the interval is likely to be un-commercial. The well is currently being plugged and abandoned.
Horodnic-1 is part of an exploration joint venture with state firm Romgaz and Europa Oil & Gas (LON:EOG), which own 37.50 per cent and 28.75 per cent respectively. Aurelian owns the remaining 33.75 per cent.
The well is expected to cost €2.5 million. Aurelian’s share of the costs will be €840,000.
"Whilst the primary objective section in Horodnic-1 was encountered, it is disappointing that it does not appear to contain commercial quantities of gas,” said chief executive Rowen Bainbridge.
“That said, this low cost commitment well has significantly increased our understanding of the Voitinel trend and also provided interesting reservoir indicators of a separate structure, that we are currently assessing using seismic acquired earlier in the year.”
Aurelian explained that Horodnic-1 encountered additional, well-developed, sands near target. This additional target was found below the regional Badenian Anhydrite.
It said that these sands form a target reservoir in a separate structure. The new target is currently being evaluated using the seismic data that was acquired earlier this year.
Bainbridge added: “The partner group will use the information gained from Horodnic-1 to further inform our appraisal activities and choice of subsequent well location on this interesting trend. A further update will be provided in the coming months."
In a separate statement Europa also confirmed that it is still in talks with a potential farm-in partner for its wholly-owned Brates Licences in Romania, which hosts the Barchiz prospect.
