Europa Oil & Gas says Aurelian hires Schlumberger to stimulate Voitinel-1 in May

Europa Oil & Gas (AIM: EOG) told investors that the Voitinel-1 well, in which it has a 28.75% working interest, will be frac stimulated in May. Aurelian Oil & Gas (AIM: AUL) is the operator of the well in the EIII-1 Exploration Area of the Brodina Block in northern Romania. Aurelian has hired Schlumberger (NYSE: SLB) to undertake a proppant frac stimulation of the `1650 sand' in Voitinel-1.

“We are looking forward to the results of the stimulation programme, which will provide us with valuable information on this significant gas discovery”, Europa MD Paul Barrett commented. “It will give us better confidence in gas-in-place numbers and in our development planning for the field.”

Upon initial un-stimulated testing, the `1650 sand' interval flowed dry gas at rates of up to 3 million standard cubic feet per day (mmscfpd). According to Europa, current estimates for gas-in-place for the Voitinel play, on-block, are up to 400 billion cubic feet (bcf).  Europa's working interest is 28.75%, equivalent to approximately 15 million barrels of oil (mmbo)

Europa said that the programme is expected to take place during May, and following the frac treatment and a short flow test, the well will be shut-in for pressure build-up for 14 days. After this period the additional potential of Voitinel-1’s `1400 sand' will be tested.

Following the announcement, Astaire Securities noted that it is encouraged to see the timing of stimulation operations at Voitinel-1 confirmed.  The London-based stockbroker highlighted that it is an important gas discovery and it expects increases to the contingent resource base to act as an important value driver for the company.

Aurelian Oil & Gas holds a 33.75% interest in the Voitinel well, while S.N.G.N. Romgaz S.A. holds 37.50% and Europa Oil & Gas has a 28.75% interest.

In February, Aurelian upgraded the potential in the Voitinel appraisal asset GIIP (gas initially in place) from 50-100bcf to 400bcf, and recently, in the company’s full-year results, Aurelian said that the Voitinel discovery may prove to be its largest find to date.

In addition to its appraisal work in Romania, Europa is also exploring in France, Poland, Ukraine, Egypt and the Western Sahara region. Furthermore, Europa’s core producing assets are based in the UK with operations in three on-shore oilfields, consisting of the wholly owned Crosby Warren and West Firsby and the 65% owned Whisby-4 well, on BP’s (LSE: BP) Whisby oilfield.

Earlier this month, Europa said that it will be undertaking production enhancement work with a view to significantly increasing well productivity from its projects this year, including work at West Firsby and work-over of the Crosby Warren-2 well.

http://www.proactiveinvestors.com.au/companies/news/6489/europa-oil-gas-says-aurelian-hires-schlumberger-to-stimulate-voitinel-1-in-may-6489.html