Aurelian Oil & Gas reports positive test results from Climauti-1 discovery

Aurelian Oil & Gas (LON:AUL) reported well-test results from Climauti-1, in the Suceava Block, Romania, which tested at a rate of 2.7m scf/d (standard cubic feet per day) at a flowing tubing head pressure of 30bar. The Suceava Block is being explored through a 50:50% joint venture with Regal Petroleum (LON:RPT).
The company highlighted that, as a result of this discovery, its total production is expected to increase by 18% over the next seven years.

"We are delighted with the test results from this well. The reservoir appears to be very productive and as a consequence the test period has been limited to that required to demonstrate reserves and support an application to develop“, Aurelian chief executive Rowen Bainbridge commented.

“Installation of the pipeline will now commence and we anticipate cash flow from this discovery in Q4 2010".

The company noted that rate was achieved over a 36 hour test period, with a drawdown of only 3.2 bar. Climauti-1 encountered the gas column, in Sarmatian sands, at a depth of 456.5-463.6m, with 7.1m gross pay and 6.3m net pay.

The partners estimate that the gross recoverable gas reserves will be 2bcf (billion cubic feet) over the life of the well, and work will start shortly on the installation of a 4km pipeline to the Bilca Gas Plant with first gas expected in Q4 2010.

Aurelian made the discovery in Climauti-1 earlier this month. The discovery builds on the company’s recent success in the country, where Aurelian recently announced the successful fracture stimulation, positive flow testing and an upgrade at the Voitinel discovery. The Voitinel discovery is located on the Brodina Block, which hosts the Voitinel/Solca trend. Aurelian is exploring Brodina through a 33.75% interest in a joint venture with Europa Oil & Gas (LON:EOG) who hold a 28.75% interest and Romanian oil and gas company Romgaz SA  has 37.50%.
At the start of this week, the partners announced that the ‘1400 Sand’ in the Voitinel-1 well has been perforated and flowed gas at 10,000scf/d (standard cubic feet per day), with no water production. These latest results follow Voitinel-1’s successful fraccing, which led to a 67% improvement in flow-rates.
According to Aurelian, assuming successful fracture stimulation, it may be possible to recover up to 6bcf (billion cubic feet) per well from the 1650 sand, and up to 3bcf per well on the 1400 sand. Also, Aurelian believes that the wider Voitinel/Solca structural trend could have gas-in-place volumes up to 400bcf.

http://www.proactiveinvestors.co.uk/companies/news/18146/aurelian-oil-gas-reports-positive-test-results-from-climauti-1-discovery-18146.html