Aurelian Starts Flow Test at Polish Well

- Aurelian Starts Flow Test at Polish Well

Thursday, August 25, 2011
Aurelian O&G plc

Aurelian provided the following operational update.

A stabilized flow test, expected to last between 14 and 28 days, has now commenced at the second Siekierki MFHW, Trzek-3. The planned six fracs have been completed without material mechanical issues. Well clean up operations and a Memory Production Log have all been completed.

A further update will be provided at the end of the stabilized flow test.

Trzek-3 is targeting a separate high to other wells in the Siekierki structure with a recoverable resource estimated at between 16 and 28bcf.

The Siekierki project is located on the Poznan licenses which are 100% held by Energia Zachόd Sp. z.o.o., a company owned 90% by Aurelian and 10% by Avobone N.V.

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Aurelian Encounters Gas Column at Polish Well

- Aurelian Encounters Gas Column at Polish Well

Wednesday, June 15, 2011
Aurelian O&G plc

Aurelian provided the following operational update.

Highlights

• Second Siekierki Multi Fracced Horizontal Well ("MFHW") Trzek-3, located in Poland, successfully drilled and completed with a cemented liner
  • 1,060 meter horizontal section of Trzek-3 now complete with 142 meter Rotliegendes gas column encountered throughout
  • Well successfully completed with cemented liner and currently being prepared for fraccing
  • Good porosities and gas indications encountered throughout horizontal section
  • Fraccing expected to commence early July taking up to six weeks to complete
  • 14 - 21 day stabilized flow test expected to commence mid-August
• First Siekierki South-West well, Krzesinki-1, to be spudded following rig move from Trzek-3
  • IDM 2000 rig moving from Trzek-3 wellsite for early July spud on Krzesinki-1
  • Well on trend with producing fields in areas of good permeability. As such, horizontal drilling and fraccing is not currently planned
  • Target depth of 4,150 meters expected to be reached in early Q4 2011
  • Targeting mid case of 44bcf net to Aurelian
• Acquisition of 200km of 2D seismic in Block 208 adjacent to Siekierki Tight Gas Project
  • 200km of 2D seismic acquired on Block 208 with focus on Rotleigendes and Zechstein plays along trend
  • Processing and interpretation should be finished by the end of Q1 2012
• First Bieszczady well produces gas and oil from fourth drill stem test in secondary target. Casing set to protect well against over pressure.
  • Short term drill stem test of 31 meter zone produces gas and oil indicating potential commerciality
  • Drilling progress has been slower than expected due to over pressured permeable interval which required cementing. Well now stable, logs obtained and 7" liner set
  • Cost exposure to slower drilling progress mitigated by fixed cost turnkey contract
  • Current depth 3,946 meters, primary targets between 4,000 and 4,800 meters

Rowen Bainbridge, Chief Executive commented, "Our second MFHW, Trzek-3, is making good progress. We are pleased to have successfully set the cemented liner and the well will now be fracced and tested during July and August. Further updates will be provided to the market throughout this period.

The Krzesinki-1 well is an exciting prospect which, if successful, could add significant volumes to the existing overall Greater Siekierki potential which at present equates to 346 bcf (net to Aurelian) in the Siekierki Tight Gas Project.

The first well in our Biesczcady concession is now drilling ahead after the Operator, PGNIG, over-came some pressure related well integrity problems. The well continues to provide encouraging signs in the short term flow tests carried out in the secondary targets. We look forward to providing further updates as the well moves towards the primary target between 4,000 to 4,800 meters."

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Aurelian Makes Headway in Europe

Aurelian Makes Headway in Europe

Thursday, April 21, 2011
Aurelian O&G plc

Aurelian provided the following operational update.

Highlights

• Previously announced mechanical issues at Trzek-2, Siekierki Multi Fracced Horizontal Well ("MFHW"), restricts production to 3mmscf/d in 15 day stabilized flow rate test
  • Result as expected after mechanical issues restrict flow in six of the ten well bore sleeves.
  • Trzek-2 to be sidetracked and fracced in Q4 2011 at a cost of €6 million to achieve target stabilized flow rate of 8 mmscf/d and accelerate recovery of 16-28 bcf.
  • A change in the completion methodology, to cemented liner and frac for the Trzek-2 sidetrack, removes the risk of similar mechanical issues recurring.
  • Sidetrack already funded and potential of project unchanged at 346 bcf (net to Aurelian) recoverable.
• Second MFHW, Trzek-3, encounters 140 meter gas column in Rotliegendes reservoir
  • Top reservoir encountered. Logs confirming good gas readings.
  • Core taken from estimated 140 metre gas column representing a 40% increase compared with Trzek-2.
• Gas Processing Facility progressing well, first gas targeted H2 2012
  • Contract to allow tie-in to national gas transmission system signed.
  • Environmental and Planning approvals received.
  • Construction approval expected H2 2011 with first gas targeted H2 2012.
• Krzesinki conventional exploration well to spud in Greater Siekierki Area Q3 2011
  • Constructing site for well targeting 45-465 bcf (gross) prospective resources.
  • Vertical well costing up to €10 million (gross) spudding Q3 2011.
• First Bieszczady well produces gas and condensate from potentially commercial zone above primary targets
  • Short term drill stem test of 42 meter zone, flows indicates potentially commercial rates of condensate and gas. Flow from third test confirms zone's prospectivity.
  • Current depth circa 3,850 meters. Primary targets between 4,000 and 4,800 meters.
  •  Processing and interpretation of second 300 km 2D seismic survey underway to support second well early 2012.
• Significant growth initiatives launched in both Carpathian and Tight Gas Core Areas
  • Award of 100% of Poreba concession, resulting in the launch of a new 2,562 km2 operated, low cost Carpathian conventional gas business targeting 500-750 bcf (gross) of gas.
  • Program commences with work over well in H2 2011 targeting resources of up to 20 bcf (gross). Up to 2mmscf/d initial production and cash flow targeted H2 2012.
  • 2012 exploration well targeting prospect with resources of between 40-60 bcf .
  • Tight Gas joint commercialization MOU signed with PGNiG targeting new tight gas blocks providing further growth opportunities outside of Siekierki.
  • MOU signed with PGNiG and FX Energy to work together sharing data to enhance understanding of Rotliegendes tight gas blocks in Central Poland.

Rowen Bainbridge, Chief Executive commented, "We are making progress to understand the Siekierki reservoir and to develop production and cash-flow by the second half of 2012. Our Trzek-2 well has shown that horizontal wells can produce from tight sands such as Siekierki, and we now need to optimize the completion, frac design and execution to crystallize the potential of this project. In the Greater Siekierki area we are looking forward to the spudding of our Krzesinki, vertical well in H2 2011.

The first well in the Bieszczady concession in our Carpathian drilling program continues to look encouraging and we look forward to providing further updates on this in the coming months.

We are also pleased to have been awarded a 100% interest and operatorship in the Poreba concession, which together with our existing West Karpaty operated concession, enables us to launch our Carpathian conventional gas business targeting first gas and cash flow in H2 2012. The MOU's/alliances that we have signed with PGNiG and FX Energy are also an important step in helping us further grow our tight gas business outside of Siekierki."

Aurelian Begins Stabilized Flow-Test at Polish Well

Aurelian Begins Stabilized Flow-Test at Polish Well

Friday, March 25, 2011
Aurelian O&G plc

- First Siekierki Multi Fracced Horizontal Well ("MFHW") Trzek-2 begins stabilized flow rate test

• Stabilized flow rate test delayed by two weeks due to mechanical problems during well clean up. Gas inflow in six of the ten well bore sleeves currently restricted. Likely cause is either clean up debris lodged in sleeve ports or sleeve ports being temporarily closed.
• Reservoir quality good, with tracers confirming that gas was recovered from all ten fracced zones during initial production test. Down hole logs also confirm good quality reservoir throughout horizontal wellbore.
• If these well bore sleeve mechanical problems persist after the end of the stabilized flow test, appropriate remedial work will be undertaken.
• Stabilized rate at the end of the 14-21 day test is likely to be less than the 8mmscf/d that the Company had originally expected. However, good reservoir quality indicators and expected lower production decline rates means that Aurelian should still recover 16-28 bcf from this well and 346 bcf (net) from 20 wells across the full project.

- Second Siekierki MFHW, Trzek-3, drilling ahead of schedule

• Casing set at 3,699 meters after 57 days, compared to 90 days in Trzek-2
• Improved drilling performance due to implementation of Trzek-2 learning
• Update on size of gas column and reservoir quality to be provided in April
• Stabilized flow test results expected by late June or early July

- First Bieszczady well targeting prospective resources of up to 100 million barrels (gross) encounters active oil and gas system in zone above primary targets

• Excellent oil and gas shows and flow of oil and gas obtained in two short term drill stem tests indicates existence of an active oil and gas system above primary targets
• Currently drilling at 3700 meters, still to reach three primary oil targets located between 4,000 and 4,800 meters
• Acquisition of additional 300 km of 2D seismic has been completed and will be interpreted later this year, block coverage now 40%
• Second well in program expected to spud late 2011/early 2012

- Confirmation that there will be no restrictions on the development of Polish unconventional gas

•  Henryk Jesierski the Chief Geologist at the Polish Ministry of Environment confirmed at a conference held at the British Embassy in Warsaw on the 16th of March 2011 that Poland will not be blocking unconventional and shale gas development.

Rowen Bainbridge, Chief Executive commented, "While the mechanical performance of the down hole and completion equipment on Trzek-2 has been disappointing, we believe that this can be corrected, will not recur in the future and will not impact the potential of our Siekierki Tight Gas Project. The Trzek-3 well is performing better than we had hoped and we will have stabilized flow rates from both MFHWs by the end of June/beginning of July which will help us optimize the development of this key project.

The Bieszczady well update is encouraging and the existence of an active oil and gas system above our primary targets provides us with further options as to how we may commercialize this well in the future.

Aurelian is moving forward with our operations and our plan to create value in both of our Core Areas. As 2011 progresses, I look forward to bringing you further updates, particularly on our planned activity for the second half of the year when we expect to spud the Krzesinki-1 conventional gas well in the Greater Siekierki Area and potentially two further high impact exploration wells in the Slovakian and Polish Carpathians."