Aurelian Oil & Gas PLC, a London-based exploration and production company, prospects in central Europe: Poland, Romania, Slovakia, and Bulgaria (OGJ, Apr. 23, 2007, p. 8).
Through its wholly owned subsidiary, Aurelian Oil & Gas Poland Sp. z o.o., the company operates Polish concessions in two areas: Poznan East in Poland’s central lowlands and Bieszczady in the southeast, along the productive Carpathian trend, which follows the mountain belt from Austria in the west, through the Czech and Slovak Republics, Poland, and into the Ukraine and Romania (www.aurelianoil.com).
Poznan East
Aurelian’s 90% Polish subsidiary, Energia Zachod Sp. z o.o., holds 100% of two concessions in the Poznan East area. The Polish licensing authorities executed the Mining Usufruct agreement (MUA) in September 2002 and granted the 6-year concessions in February 2003.
Aurelia acquired seismic in first-half 2006 and selected a drilling location.
In November 2006, Energia Zachod announced it had signed a contract with Oil & Gas Drilling “Nafta” Ltd. of Pila to drill the Trzek-1 appraisal well on the Siekerki structure. This is Aurelian’s first well in Poland.
State oil company POGC drilled four wells on the Siekerki structure in the 1970s, all with gas shows in the Permian Rotliegendes formation. The Rotliegendes formation is the reservoir in the giant Groningen field in the Netherlands and the main gas producing horizon in the UK and Dutch sectors of the Southern North Sea. Aurelian says the eastern end of this gas-producing basin lies in the Polish central lowlands.
Aurelian prepared the Siekerki drill site during the winter and spudded the Trzek-1 well on Mar. 7, 2007, east of the city of Poznan. Drilling was expected to take 3 1/2 months.
Roy Hartley, Aurelian’s operations director, told OGJ that the Nafta Pila rig has a Upetrom mast, substructure, hook, rotary, and swivel with 320 ton capacity; Italian 1,700 hp drawworks, and two National 1,300-hp mud pumps, forming “a very effective rig.”
On May 16, 2007, Aurelian’s Managing Director Michael Seymour, announced the “well being drilled at Trzek is progressing, although the drilling has been harder than originally anticipated.” He said the target depth is below 3,000 m.
Carpathian blocks
Aurelia has 100% interest and operatorship in three Carpathian blocks (Swidnik, Medzilaborce, and Snina) in Slovakia, abutting the Polish and Ukrainian borders. These licenses began Aug. 1, 2006, and cover about 2,480 sq km.
On Apr. 2, 2007, Seymour said the company was reprocessing existing seismic data over the Carpathian blocks and expected to begin additional seismic work in early 2008, adding, “We may seek a partner to share the exploration risk.”
Bieszczady blocks
In November 2006, Aurelian signed initial agreements with Eurogas Polska Sp. z o.o. that will lead to Aurelian taking a 25% interest in several blocks in Poland’s Bieszczady area (bordering Ukraine).
The Bieszczady blocks are adjacent to the company’s Carpathian blocks in Slovakia.
Aurelian’s assumption of interest in Bieszczady remains subject to the issue of a new MUA between the Polish licensing authorities and Polskie Gornictwo Naftowe i Gazownictwo SA (PGNiG; exploration and production arm of POGC) and a joint operating agreement between PGNiG, Eurogas Polska, and Aurelian. PGNiG will hold the MUA and the concessions on behalf of itself (50%), Eurogas Polska (24%), and Aurelian (25%).
In his Managing Directors Report, issued Apr. 2, 2007, Seymour said “Aurelian will pay Eurogas’ 25% share of the first €10 million of the work program which should include 500 km of new 2D seismic and at least one well.”
On May 16, 2007, Aurelian announced that “the joint operating agreement is expected to be signed this month and will be followed by the acquisition of 2D seismic during the summer months.”
