Oil and gas E&P company Aurelian Oil & Gas Plc (LON: AUL), announced today an operational update on its core areas of activity and key developments.
Aurelian was founded in 2002 to explore for hydrocarbons in the Carpathian thrust zones of Eastern Europe and adjacent areas. Current projects span the region from Poland to Bulgaria, with exploration prospects in four countries: Romania, Slovakia, Bulgaria and Poland. Aurelian is the operator in all of these except Bulgaria.
Highlights included the signing of engineering, procurement, construction management and drilling contracts at the Siekierki Tight Gas project in Poland and confirmation that the first horizontal well at the prospect is expected to spud in June 2010. The company also revealed a significant potential upgrade to Romanian Voitinel appraisal asset from 50-100bcf to 400bcf. Going forward, Aurelian announced an 18% increase in production estimates, where the April 2010 spud date is anticipated to increase the Bilca production forecast over the next seven years. The company also identified a number of leads in Slovakia, as well as the Smilno gas prospect that was assessed in December 2009 at an expected monetary value of EUR136m. Additional seismic exploration of the area is reportedly expected to continue in 2010, with initial drilling scheduled for 2011.
Looking at 2009, results are expected to be a significant improvement on the previous years, where production, volumes and revenues are anticipated at 956MMscf, 2.62MMscf and EUR3m respectively. The announcement also included a management change: Chris Brown is to take over from Michael Seymour in the role of Director of Exploration. Michael will continue to work part time as Executive Director in the role of Adviser on Government and Partner Relations, from May this year.
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. This Operational Update records steady progress against all the targets we set out. We have refocused the Company on Core Areas, added technical and operating capability at the Board and Executive levels and, through our successful EUR39 million capital raise, removed the financing risk that was depressing our share price. We have advanced all of our projects and, with the significant upgrade in GIIP estimate to 400 bcf on our Voitinel trend,…
