Aurelian to Spud Romanian Well

Aurelian provided the following operational update. 


 June 2010 spud for first Siekierki horizontal well (Trzek-2). Processing Facility on track

  • wellsite almost complete. Other major drilling service contracts awarded. Fracture stimulation service currently being tendered
  • Processing Facility long lead items to be ordered in June 2010.
  • Environmental Impact Assessment and technical input for Planning Approval to be submitted June 2010 for September 2010 approval.
  • Construction Permit issued by year end allowing construction to start early 2011
  • Updated reservoir modeling of first Siekierki well supports CPR estimates
    • updated reservoir modeling of Trzek-2 indicates potential recovery per well at upper end of 16.5 to 28.6 bcf range estimated by Gaffney Cline & Associates ("GCA") in CPR where Aurelian was allocated a mid case contingent gas resource of 346 bcf.
  • Q4 2010 spud date for first high impact Carpathian Thrust Fold Belt well at Bieszczady
    • 2009 2D seismic program identifies additional prospects to those identified in the CPR where Aurelian was allocated a mid case prospective oil resource of 89 mmbbls.
  • Three seismic surveys planned across Polish Core Areas in H2 2010
    • Southern Permian Basin - 80km 2D in Kalisz. Up to 300km² 3D in Cybinka/ Torzym,
    • Carpathian Thrust Fold Belt - 150 km of 2D in East Karpaty to confirm drillable prospect where the CPR allocated Aurelian a mid case prospective oil resource of 236 mmbbls - post Strategic Partnership with PGNiG.
  • Appraisal of Voitinel/Solca trend in Romania
    • results of fracture of 1650 sand available week commencing 17th May with results of flow test from 1400 sand expected in June
    • 60km of 2D and testing of two Romgaz wells in adjacent block to assist assessment of 400bcf GIIP estimate. Romgaz joint development discussions may result.
  • Climauti-1 well in Suceava and 200 km of 2D across Bacau and Cuejdiu
    • Climauti-1 spuds later in May 2010, targeting 2bcf of recoverable gas and increasing Aurelian's forecast production by 18%
    • 2D survey targeting leads of 67 bcf and 92 bcf respectively in Bacau and Cuejdiu
  • Two well drilling program in Q3 and Q4 2010in B1- Golitza, Bulgaria
    • targeting 20-30 bcf - prospects at 1,500 meters in Q3 and 600 meters in Q4
  • Slovakia Seismic survey planned for H2 2010
    • 150 km of new 2D seismic to be acquired to define a specific prospect for drilling in H2 2011.
    • Recent seismic processing and interpretation identifies a number of leads in addition to the Smilno exploration prospect where Aurelian was allocated a mid case prospective gas resource of 408 bcf in the CPR.
  • New Chairman
    • John Conlin, a petroleum engineer with over 34 years' experience in the oil and gas industry, including 28 years at Shell, becomes Chairman at today's AGM. 

Rowen Bainbridge, Chief Executive commented, "In October 2009 we set out a new strategy and a series of milestones against which we could be measured. In February 2010 we published our first Operational Update to enable measurement of our progress against these milestones. 

This, our second Operational Update, reconfirms steady progress against all the targets. We are on track to spud our first two high impact wells in line with our milestones; in June we commence the drilling of the first multi fracced horizontal well in our Tight Gas Project in Siekierki and in October we drill our first Bieszczady exploration well in the Carpathian Thrust Fold belt. 

We have an extensive and very exciting work program ahead of us over the next two years, and we have the funding and the team in place to carry it out. I look forward to providing further updates as we continue to make progress delivering on this program and achieving against the milestones that we have set ourselves."