Aurelian to Appraise Voitinel Discovery in Romania

Aurelian is planning to appraise the Voitinel-1 gas discovery, drilled and successfully tested last year in the Brodina Concession in Northern Romania. Aurelian now believes that the Voitinel trend could hold up to 400bcf of Gas in Place, a significant increase from its previous estimate of 50-100bcf. However, the ultimate volume of gas recoverable will be dependent on the results of the fraccing and testing in April 2010 together with a further appraisal wells in 2010 and 2011. These activities are detailed more fully below.

On November 17, 2009, Aurelian announced that Voitinel-1 had tested gas from a sand between 1,653 and 1,672 meters ("the1650 sand") and that another sand between 1,400 and 1,425 meters ("the1400 sand") appeared to be gas bearing. Post test analysis of the 1650 sand data indicates the well to be in contact with a substantial volume of gas but flow boundaries are noted near the well bore and these limit the flow rate. One of the objectives of appraisal will be to determine whether these barriers (probably faulting related to the formation of the structure) are localised or pervasive throughout the structure and whether techniques such as high angle drilling and fracture stimulation can overcome them.

As the first step in appraisal it has therefore been decided to fracture stimulate and flow test the 1650 sand to determine whether the flow rate can be improved. Equipment will be mobilized to site in March 2010 to carry out this work. The stimulation, subsequent flow test and monitoring of the recovery in reservoir pressure will take about 4 weeks. Thereafter it is planned to mobilize a rig to site to recomplete the well and allow the 1400 sand to be tested.

Re-mapping of the Voitinel structure to incorporate the well data including reprocessing and depth migration of the seismic is underway at present. This should then allow an appraisal well to spud in 3Q 2010.

In the southern part of the Brodina concession a second structure called Solca extends into the Moldova Nord concession held by Romgaz, one of the joint venture partners in Brodina. In the Moldova Nord concession, Romgaz has completed the drilling of the Paltinu-102 well on the Solca trend close to the Brodina concession boundary in January 2010. Romgaz has informed Aurelian that it had encountered gas shows and plans to test four sands in this well. It is likely that this will commence in April and take some weeks to complete. Another well, Paltinu-103 has commenced drilling to the east of Paltinu-102. As both wells are less than 1km from the Brodina/Moldova Nord concession boundary, it is clear that if Paltinu-102 and 103 test gas and either or both accumulations extend into Brodina, the results would be significant for Aurelian and its partners. Given the above, it is expected that discussions will begin between Aurelian and Romgaz as respective operators regarding co-operation between the Brodina and Moldova Nord groups to jointly develop these common exploration and development projects.

Based upon the above explanation and planned activities, Aurelian believes that the wider Voitinel structural trend could have gas-in-place volumes as great as 400bcf.

Interests in the Brodina block are Aurelian Oil & Gas (Romania) SRL 33.75% (Operator), S.N.G.N. Romgaz S.A. 37.50% and Europa Oil & Gas srl 28.75%.