Aurelian Oil and Gas PLC announced that, after five years of successful joint ventures in Romania with the state gas company SNGN Romgaz S.A., Aurelian and Romgaz are strengthening their relationship both outside and inside Romania.
Romgaz is joining Aurelian in projects in Slovakia and Poland. This will be the first time for many years that Romgaz has participated in exploration outside Romania.
In Slovakia, Romgaz will earn a 25% interest in Aurelian's three licenses Svidnik, Medzilaborce and Snina by paying a 50% share of the $5 million seismic program which will start within the next couple of weeks. Romgaz is therefore effectively participating on the same terms as JKX Oil & Gas plc, whose farm-in was announced on April 7. Participating interests after the farm-out will be Aurelian (operator) 50%, JKX 25% and Romgaz 25%.
In Poland, Romgaz will earn a 15% interest from Aurelian and a 15% interest from GB Petroleum plc in the Cybinka and Torzym concessions awarded in February 2008. The concessions, located in the west of Poland, adjacent to the Polish border, are prospective for oil in the Zechstein and 3D seismic is planned for 2009. Romgaz will pay a 45% share of the cost of this survey. The participating interests after the farm-in will be Aurelian (Operator) 35%, GB 25%, Romgaz 30% and Avobone Poland B.V. 10%.
Within Romania, Romgaz will earn a 40% interest in the Bacau concession by paying 66.67% of the Lilieci-1 well, expected to spud around 1 August. This is a 2,900 meter well to test Sarmatian horizons adjacent to Romgaz's large Roman-Secueni gasfield. After the farm-in, participating interests will be Aurelian (Operator) 41%, Romgaz 40% and Europa Oil & Gas plc 19%.
Aurelian and Romgaz have also agreed to work together to evaluate the next tender round of concessions to be offered by the National Agency for Mineral Resources, with a view to applying together. This round is expected around the end of 2008.
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