Aurelian provided the following operational update.
- Second Siekierki Multi Fracced Horizontal Well ("MFHW") Trzek-3, located in Poland, successfully drilled and completed with a cemented liner
- 1,060 meter horizontal section of Trzek-3 now complete with 142 meter Rotliegendes gas column encountered throughout
- Well successfully completed with cemented liner and currently being prepared for fraccing
- Good porosities and gas indications encountered throughout horizontal section
- Fraccing expected to commence early July taking up to six weeks to complete
- 14 - 21 day stabilized flow test expected to commence mid-August
- First Siekierki South-West well, Krzesinki-1, to be spudded following rig move from Trzek-3
- IDM 2000 rig moving from Trzek-3 wellsite for early July spud on Krzesinki-1
- Well on trend with producing fields in areas of good permeability. As such, horizontal drilling and fraccing is not currently planned
- Target depth of 4,150 meters expected to be reached in early Q4 2011
- Targeting mid case of 44bcf net to Aurelian
- Acquisition of 200km of 2D seismic in Block 208 adjacent to Siekierki Tight Gas Project
- 200km of 2D seismic acquired on Block 208 with focus on Rotleigendes and Zechstein plays along trend
- Processing and interpretation should be finished by the end of Q1 2012
- First Bieszczady well produces gas and oil from fourth drill stem test in secondary target. Casing set to protect well against over pressure.
- Short term drill stem test of 31 meter zone produces gas and oil indicating potential commerciality
- Drilling progress has been slower than expected due to over pressured permeable interval which required cementing. Well now stable, logs obtained and 7" liner set
- Cost exposure to slower drilling progress mitigated by fixed cost turnkey contract
- Current depth 3,946 meters, primary targets between 4,000 and 4,800 meters
Rowen Bainbridge, Chief Executive commented, "Our second MFHW, Trzek-3, is making good progress. We are pleased to have successfully set the cemented liner and the well will now be fracced and tested during July and August. Further updates will be provided to the market throughout this period.
The Krzesinki-1 well is an exciting prospect which, if successful, could add significant volumes to the existing overall Greater Siekierki potential which at present equates to 346 bcf (net to Aurelian) in the Siekierki Tight Gas Project.
The first well in our Biesczcady concession is now drilling ahead after the Operator, PGNIG, over-came some pressure related well integrity problems. The well continues to provide encouraging signs in the short term flow tests carried out in the secondary targets. We look forward to providing further updates as the well moves towards the primary target between 4,000 to 4,800 meters."