OilVoice - Aurelian Oil & Gas Announces Preliminary 2008 Results

Aurelian Oil & Gas Announces Preliminary 2008 Results

Thursday, April 09, 2009

Operational Highlights

• Highly successful exploration programme:
- 3 new gas discoveries in Romania
- Romania portfolio grows in significance to balance Poland

• Strong progress towards development in Poland
- CPR confirms Siekierki resource and provides basis for appraisal and development planning
- Increase in acreage at Siekierki Project post CPR
- Canamens farm in will underpin the 2009 drilling programme

Financial Highlights

• Farm out of Siekierki Project, Poznan, Poland, to Canamens Energy maintains upside while substantially reducing costs to Aurelian
• Farm out of interests in Romania, Poland and Slovakia to Romgaz reduces costs and strengthens relationship with strategic regional player
• Acquisition by Kulczyk of 13.2% interest from Ospraie forges new link with Poland

Post balance sheet end events and Outlook

• 3-D survey on Siekierki results in significant increase in estimated gas in place
• Successful well test on Lilieci-1
• Farm-out of Golitza in Bulgaria to Sorgenia
• Appointment of Tristone and Jefferies as joint brokers

• Remaining programme for 2009 focuses on diverse portfolio:
- Drilling on Siekierki later in 2009
- Increased Romanian production
- Potential high impact Romanian exploration well
- Further seismic to identify prospects in Carpathians and Lilieci area in Romania
- Seismic in new northern Poznan block

Michael Seymour, Managing Director of Aurelian, commented:
“Against a background of hardening financial and commodity markets, Aurelian has had a remarkably positive year on both strategic and operational fronts.

We have cemented strategic relationships with two strong regional players in KIH and Romgaz, underpinned 2009 drilling on our key Siekierki project in Poland and have maintained our upside whilst cutting costs through intelligent farmouts.

It should not be forgotten that our primary focus is to discover and develop oil and gas. On this front, we have again been remarkably successful, drilling three wells in Romania that are slated for future production, and further increasing our gas in place in Poland

We are confident that our successes, combined with a focussed portfolio with multiple upsides, and a seasoned management team with unrivalled regional experience will take Aurelian successfully through this period of difficult markets and emerge as the pre-eminent Central and Eastern European gas production and development company.”