Aurelian Oil & Gas

Aurelian was founded in 2002 to explore for hydrocarbons in the Carpathian thrust zones of Eastern Europe, and adjacent areas from which oil has been produced continuously for over 160 years. This province contains oil and gas fields of world size, all of them however, from shallow depths. Little to no in-depth exploration was carried out during the last century as the focus was on the eastern provinces of Russia.
 
The company's expertise and strategy lie in identifying and developing sound projects within this region where we have built up a unique base of expertise. Applying an aggressive exploration programme and high quality technical expertise to our projects, Aurelian is building a balanced portfolio which includes production, appraisal and exploration over 21,000 sq kilometres (5.2 million acres).
 
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; and exciting exploration prospects including projects in four countries: Romania (four blocks), Slovakia (three blocks), Bulgaria (two blocks) and Poland (14 blocks). Aurelian is the operator in all of these except Bulgaria (Aurelian don't operate in Bieszczady in Poland).

Aurelian’s focus remains on re-emerging Central Europe, one of the oldest and most prolific oil provinces in the world. Almost untouched by the technology of the last thirty years developed elsewhere, new and potentially large reserves can be expected to be found within countries which lie in the EU with its stability of title, its close access to markets and its attractive fiscal terms for production.

(click on each project title for more details)

BULGARIA

B-Golitza and B1-Golitza

Interest: 50%
Operator: JKX Oil & Gas plc

The western and central part of these licences was tested in 2007 by the Golitza-1 well, which was abandoned without testing. The emphasis has shifted to the eastern area, where the edge of the Black Sea Tertiary Basin comes onshore. Offshore, the Galata field and its satellites produce gas from Eocene/Cretaceous sands and these horizons have been known to be associated with good gas shows from drilling in the 1950s and 1960s, a time when gas was felt to have little value.

2-D seismic acquired in 2005 highlighted the potential of this area and has now led to a 3-D survey which was obtained in late 2008. The survey is now being processed and it is anticipated that wells could be drilled in 2010 to evaluate this prospective play.

POLAND

Poznan East and North

Interest: 90%
Operator: Energia Zachod Sp. z o.o

During 2008, a 298 sq km 3-D seismic survey was acquired and the interpretation is now being finalised. The calculation of the volumes of gas in place (GIIP) are as follows:

Kalisz

Interest: 50%
Operator: Aurelian

During 2008, a 250 km 2-D seismic programme was acquired over the southern part of this block, located to the southeast on trend with the Poznan Blocks and recent discoveries made by POGC/FX Energy. It is believed a Rotliegendes structure may be confirmed by this survey which is currently still being processed.

Cybinka and Torzym

Interest: 35%
Operator: Aurelian

These concessions adjacent to the German border were acquired in 2008 and are prospective for a Zechstien play, being developed in nearby by the state oil company POGC. The existing data is being evaluated and will be followed by 3-D seismic either late this year or during 2010.

ROMANIA

Brodina

Brodina Block EIII-1 Production Area (containing the Bilca gas plant and associated wells)
Interest: 62.5%
Operator: Aurelian

On this most northerly concession, we have made five discoveries at shallow depths, two of them, Fratauti-2 and Vicsani-1, in 2008. All these are tied into our facilities at Bilca, where the gas is processed. The Bilca facilities were commissioned in 2006 with the gas sent by pipeline to the Romanian national grid at Radauti. Current production is approximately 3.5 MMSCFD.

Bacau

Bacau Block EIII-4
Interest: 41%
Operator: Aurelian

This is the most southerly of our blocks in Romania. It lies immediately south of the giant Roman-Sequeni gas field operated by our partner in Bacau Romgaz S.A. the state gas company. In 2008, Aurelian drilled our first well in the concession at Lilieci-1 and discovered gas in a number of Miocene sands below 2,000 metres.

Cuejdiu

Cuejdiu Block EIII-3
Interest: 45%
Operator: Aurelian

This block is south of Brodina and primarily within the Carpathian Fold Belt. Boistea-1 was drilled in 2007 as a Miocene test into the platform to the east and tested gas at rates of around 1 MMSCFD. Feasibility work is now being undertaken (as with Dornesti-1 – see Suceava) to assess the potential commerciality of a small power generation project to convert the gas to electricity.

Suceava

Suceava Block EIV-1
Interest: 50%
Operator: Aurelian

The Suceava block lies to the east of the Brodina block. Dornesti Sud -1 was drilled in 2007 and, like Boistea-1 (see Cuejdiu), flowed gas at a rate of around 1 MMSCFD. This well is also being assessed for its commercial potential as part of a small power generation project.

POLAND & SLOVAKIA

Bieszczady

Poland Bieszczady Blocks 416, 417, 436, 437, 438, 456, 457 and 458
Interest: 25%
Operator: PGNiG

This is a very large area (equivalent to approximately 16 North Sea blocks) located to the south west  of the giant Przemysyl  gas field. Several small and now largely depleted oilfields lie within the blocks, but only three seismic lines had been acquired prior to us becoming involved. A new 2-D seismic survey is now being acquired and initial results appear very interesting. The definition of a good structure could lead to drilling in 2010.

Svidnik, Medzilaborce and Snina

Slovakian Blocks Svidnik, Medzilaborce and Snina
Interest: 50%
Operator: Aurelian

These blocks are contiguous to Bieszczady across the border in Slovakia and the prospects are similar. The area abounds with surface oil seeps and seismic was acquired during 2008. This data is now being processed and will lead to a further survey in 2010. Aurelian's share of the costs of both survey is largely carried by the other joint venture partners.

Karpaty West

Karpaty West Blocks (parts of) 410, 411, 412, 430 & 431
Interest: to be finally agreed with partners
Operator: Aurelian

These blocks are in the final process of being awarded and represent a large area of prospective blocks in the Western Carpathians which are under-explored.

The Board

David Prior - Chairman

Michael Seymour - President

Rowen Bainbridge - CEO

Mark Reid - Chief Financial Officer

John Lippitt - Non-Executive Director

Malcolm Pattinson - Non-Executive Director

Miles Donnelly - Non-Executive Director

Dariusz Mioduski - Non-Executive Director

John Conlin - Non-Executive Director

Senior managers

Roy Hartley - Operations Director

Stanislav Benada - Slovakia Country Manager

Ladislav Blazek - Drilling and Logistics Manager

Pawel Chalupka - General Manager, Poland

Evgeny Georgiev - Bulgaria Country Manager

Vladimir Rosca - Romanian Country Manager

Anna Srokowska-Okonska - Poland Country Manager

Raymond Godson FCA - Company secretary

For more information click here

After the allotment of shares on 3 February 2010.

*Contessa is beneficially owned by Mr Donnelly who is a Director

Updated from Aurelian's website on 4th April 2010