Aurelian Oil & Gas PLC (AIM: AUL) said further testing of its Lilieci-1 well at the Bacau concession in Romania, announced as a discovery in February 2009, has been successfully completed.
Lilieci-1 evaluated a large number of Sarmatian-age sands over an interval of some 1,250 metres. Gas shows were evident throughout the section down to total depth and four sands between 2,412 and 2,584 metres flowed gas upon test at rates up to 122,000 cubic metres per day. Post well evaluation has indicated that additional target sands exist in the section just below the well's total depth of 2,980 metres.
The objective was to prove up a minimum quantity of gas to justify investment in a long term production test, during which the gas would be sold. This objective has been achieved, the company said in a statement.
Romgaz has recently made a gas discovery, Berbeceni-1, to the east of the Bacau concession in the same play as Lilieci-1. This play now appears to have potential for substantial gas production with Romgaz about to test it again with the Bogdanesti-1 well. This well will shortly be drilled close to the Bacau concession boundary and on a trend that includes Lilieci-1 and also Aurelian's Schineni and Siretu prospects.
The results of the well will clarify their prospectivity and narrow the options for progressing the Lilieci-1 discovery, Aurelian said.
The partners in the Lilieci-1 well are Aurelian as operator with 41 percent, Romgaz with 40 percent and Europa Oil & Gas PLC (AIM: EOG) with 19 percent. Under the terms of an agreement between Aurelian and Europa under which Aurelian has paid a proportion of Europa's share of the well and testing costs, Europa will have a short period in which to elect either to participate in the appraisal and development of the Lilieci discovery or to assign its interest in the discovery to Aurelian.
If it elects to participate, Europa will pay Aurelian a sum currently estimated at €6.0 million comprising the aggregate of its unpaid share of the well costs and an agreed premium.
Aurelian MD Michael Seymour said: “The northern part of the Bacau concession now looks very interesting. Success for Romgaz with Bogdanesti-1 would encourage us to drill Schineni and Siretu and provide us with further insight for planning the development of our Lilieci discovery.
No comments:
Post a Comment