Aurelian Encounters Gas Column at Romania Well
Aurelian provided the following operational and corporate update.
- First Multi Fracced Horizontal Well (MFHW) Trzek-2 encounters 100 meter Gas Column in Rotliegendes Sandstone
- Top reservoir has been encountered by the vertical section of the well. Good gas readings and core have been taken from an estimated 100 meter gas column.
- After coring and logging, well to be sidetracked and drilled horizontally towards 91 meter gas column discovered by Trzek-1.
- Completion of Frac and Flow test expected during December 2010 in line with planned well schedule and budget.
- €75 million Credit Facility agreed
- Macquarie Bank Limited to provide €75 million Credit Facility.
- Letter of Intent ("LOI") signed for Nitrogen Removal Unit ("NRU") at Siekierki Gas Processing Facility and Environmental Impact Assessment accepted
- LOI signed to provide Long Lead NRU required to treat Siekierki gas to sales quality.
- Polish Environmental Authority accepts Environmental Impact Assessment for Gas Processing Facility, maintaining construction start date of early 2011 and first gas production target of end of 2011.
- 300km 2D seismic survey commenced in Bieszczady license in Carpathian Thrust Fold Belt
- Good quality information already being obtained.
- Completion of survey will take block coverage to approximately 40%.
- Board Changes
- John Matthews, a Chartered Accountant with over 35 years Investment Banking and Commercial experience, most recently as Chairman of Regus PLC, joins Board as a Non-executive Director and Chairman of the Audit Committee.
- Given ongoing strengthening of the Board, Malcolm Pattinson has decided to retire as a Non-executive Director and Chairman of the Audit Committee.
Rowen Bainbridge, Chief Executive commented, "Encountering the estimated 100 meter gas column, on schedule and on budget, is a major step forward in our 346 bcf Siekierki Tight Gas Project, as is our progress with planning and approvals for the Processing Facility. In the Carpathians, we are increasing to 40% the 2D seismic coverage on our highly prospective Bieszczady block where we will be spudding our first well in October targeting prospective resources of 100 million bbs of oil (gross). In addition, the new €75 million Credit Facility can be used to fund the second Multi Fracced Horizontal Well and Gas Processing Facility at Siekierki. This means that together with our existing cash in hand, we can now fund our previously announced well program, the remaining eight of which, will be completed by the end of 2011.
We are making significant progress in de-risking our portfolio and appropriately capitalizing the business to be in a position to further invest in, and create value from, our outstanding asset base. I look forward to bringing you further updates in the coming months which promise to be the most exciting in the Company's history."
John Conlin, Chairman commented, "I want to welcome John on to the Board and I feel that his appointment further helps shape the Board, and adds to it, the necessary capability that will help Aurelian progress to the next level in its development. I also want to express my thanks to Malcolm for the many years of valued service that he has provided to Aurelian and I wish him every success in the future."