Aurelian Oil & Gas PLC (LON:AUL) said its drilling commitment in Bulgaria has now ended, after operator JKX Oil & Gas PLC (LON:JKX) reported it plugged and abandoned the Shkorpilovtci South West R-01 gas exploration well on the B1 Golitza licence in the east of the country.
The well was drilled to a total depth of 837m. Aurelian relayed JKX comments, saying that significant gas shows were encountered during drilling of the primary target, the Avren Formation, and the underlying secondary target, the Dvoynitca Formation sandstones. However, wireline log data demonstrated that in this location the primary reservoir was marginal to the main depositional system.
The underlying secondary reservoir was also determined to be water wet. The shallow depth to target precluded an optimal geological sidetrack at this time.
“Whilst the JV group is disappointed with the lack of success of both recent Golitza wells, it believes that the co-venturers can integrate the information from these wells with the 3D seismic to high grade further exploration targets within the Avren Formation,” Aurelian said.
The percentages in the block are: JKX (Bulgaria) Limited 40 percent, Aurelian subsidiary Balkan Explorers (Bulgaria) Ltd 30 percent and Sorgenia E&P Bulgaria EOOD 30 percent.
Aurelian chief executive Rowen Bainbridge said: “This well ends Aurelian's current drilling commitment in Bulgaria. The significant gas shows from the well are encouraging and we will take this into account, together with the information gained from the first well on the programme, in arriving at a decision as to the extent of any future financial investment in this non-core area."
Aurelian currently has two key focus areas; the development of a significant Polish 'tight gas' field, Siekierki, and the exploration of a six million acre land-bank which runs along the Carpathian basin from southern Poland, through Slovakia, Romania and Bulgaria.
A new €75 million credit facility has also just been agreed and this, when added to more than €36 million of cash and equivalents in the bank, ensures that Aurelian is sufficiently funded to develop these two areas during the busy year ahead.