Aurelian Oil & Gas PLC, was founded in December 2002, by Managing Director, Michael Seymour and is focused on the re-emerging Central and Eastern European oil and gas markets, the oldest producing oil province in the world.
The Company has developed a diversified portfolio throughout the region. Currently Aurelian has a wide portfolio of concessions in Poland (18), Slovakia (3), Romania (4) and Bulgaria (2), and a range of production, appraisal and exploration projects.
Aurelian Oil & Gas secures new license in Bulgaria
Aurelian Oil & Gas (AIM: AUL) said its strategy to test prospective areas in Bulgaria with minimal investment was on track after the company secured a zero-cost option over a new exploration license, called Provadia, while partner Sorgenia has exercised its farm-in option to drill on Aurelian's 30% owned B1-Goliza license.
Sorgenia has paid for 3D seismic and is currently earning a 30% interest by paying a 40% share of the first two wells at a cap of US$4.5 million gross. The 10% promote will be split 6.67% for the benefit of Aurelian's wholly owned Bulgarian subsidiary, Balkan Explorers Limited, and 3.33% for the benefit of JKX Oil & Gas (LSE: JKX), which holds the remaining 40% in the block.
The companies plan to drill two wells in 2010, the first of which will test a 30 bcf (billion cubic feet) at 1,500 metres.
“The area has seen a number of wells previously drilled with substantial gas shows in the era before seismic became available. The acquisition of the 3D last year brings confidence to the selection of the proposed locations. Successful exploration will de-risk a number of other leads which will become candidates for further drilling and could lead to a valuable regional business in time,” said chief executive of Aurelian Oil & Gas Rowen Bainbridge.
The company has also been awarded the Provadia prospective exploration license in Bulgaria with a JV (joint venture) company Overgas Inc AD owned by Russian energy major Gazprom, which will cover a minimum work programme of €4 million to carry JKX and Aurelian through this stage of the project.
The Provadia block covers an area of 1,787 sq km (square kilometres) , part of which was carved out of the B-Golitza and B1-Golitza licences in 2007, and will be operated by Overgas.
Aurelian called this a “zero-cost option” on what it said could be very large structures in a block close to its existing areas of operation.
“We are delighted to be working with Overgas and look forward to the results of new seismic acquisition which will be taking place as part of the minimum work program during the next two years,” added Bainbridge.
Back in January, Aurelian Oil & Gas announced share issue plans to raise €32 million to fund the first Siekierki well in Poland and up to seven exploration and appraisal wells in Eastern Europe in the next two years, targeting assets with an expected monetary value (EMV) of €1.2 billion.
