Aurelian, PGNiG Form Carpathian Exploration Venture
Aurelian announced Thursday that it has entered into an agreement with the Polish state oil and gas company, Polskie Gornictwo Naftowe i Gazownictwo S.A. ("PGNiG"), for PGNiG to join Aurelian as a strategic partner in the exploration of Aurelian's six exploration concessions in the Polish Western Carpathians. PGNiG will gain a 40% participating interest in Karpaty West and a 20% participating interest in Karpaty East. Aurelian will continue to act as operator and will hold the balance of the participating interests.
Under the terms of the arrangements, PGNiG will provide the joint venture with access to their extensive data base, comprising wells in the region and approximately 2,000 kms of seismic data. Aurelian will perform the reprocessing and interpretation of this seismic data as the first part of the ongoing program. This is expected to lead to the acquisition of new seismic in the second half of 2010.
Besides providing access to their data base, the collaboration with PGNiG will bring great benefit to the venture through their substantial history and experience within this very prospective region. PGNiG also have gas and oilfields in the Karpaty area.
The Karpaty West and East concessions cover 2,230 sq kms and 1,296 sq kms respectively in the prospective trend of the western Polish Carpathians. Aurelian also partners PGNiG, with a 25% interest and PGNiG as operator, in the Bieszczady blocks, covering a further 3,547 sq kms in the eastern Polish Carpathians.
Rowen Bainbridge, CEO of Aurelian, commented:
"Aurelian is delighted to be working in close partnership with PGNiG in this highly prospective area. The provision of their data base and access to their long experience in the region will undoubtedly accelerate our programs for exploring the region. The value of the data base cannot be over-estimated: to replicate it would cost at least $40m at today's prices. It is also a testament to the quality of the Aurelian team that a company such as PGNiG will work with Aurelian as operator of these concessions.
"While the Carpathians as a whole have already produced over 14 billion barrels of oil equivalent, Aurelian believes that significant untapped potential remains in the Polish Carpathian Fold Belt - the region is currently one of the great remaining areas in the world where modern seismic and similar technologies have yet to be fully deployed. By joining Aurelian as a strategic partner in the Karpaty Blocks, PGNiG has validated the exploration potential that we see there.
"Aurelian now partners PGNiG in over one-third of the whole of the Polish Carpathian Fold Belt and holds adjacent acreage on the Slovakian side of the border. With PGNiG's knowledge of the area and unrivalled expertise, Aurelian looks forward to working with them to unlock the reserves in concessions we hold there. "
The technical information and opinions contained in this announcement have been reviewed by Roy Hartley B.Sc (Hons) (Imperial College), FEI, FGS, C. Eng, Aurelian's Director of Operations who has 40 years of experience in the oil exploration and production industry. He has consented to the inclusion herein of such technical information and opinions. Aurelian Oil & Gas PLC, is a European focused E&P Company whose core purpose is to create shareholder value through the capture, evaluation, exploration, appraisal and development of onshore hydrocarbon resources and the application of conventional technologies to underexplored proven hydrocarbon systems. It was founded in December 2002, by Michael Seymour to focus on the established oil provinces in the central European countries of the former CIS where there had been little investment in seismic and drilling technology during the previous 20 years.