Aurelian Inks Gas Sales Agreement for Bilca Development

Aurelian Oil & Gas, acting as operator of the joint venture with MIRC (a wholly owned subsidiary of Ascent Resources plc) and Europa Oil & Gas (Holdings) plc, has signed a contract with S.N.G. N, Romgaz S.A, the Romanian state gas company and the fourth partner in this Joint Venture, for the sale of gas production from the Bilca Development situated in the Brodina Block in Northern Romania.

The production facilities have now been commissioned and a production license has been applied for from the Romanian authorities. It is anticipated that the permit will be issued during September and production will commence once the permit has been issued. An initial production rate of 7 million cubic feet per day is planned (c. 200 th. cu.m/day). This rate will be kept under observation and will be adjusted according to reservoir conditions.

Michael Seymour, Managing Director of Aurelian commented:

"We are particularly pleased to have brought these first three gas discoveries in Romania to production within only 27 months of the first discovery well. This has been an important and constructive first production project for Aurelian which will stand us in good stead for the future discoveries we are confident which will follow in Romania."