OilVoice - Aurelian Oil & Gas Provides Operational Update

Aurelian Oil & Gas Provides Operational Update

Thursday, February 25, 2010

Aurelian, the Central European focused E&P Company, provides the following operational update on its core areas of activity, key projects and corporate developments.

Highlights
• Signing of key contracts in Siekierki Tight Gas Project in Poland - signing of key Engineering, Procurement and Construction Management services ('EPCM') and Drilling contracts, firms-up June 2010 spud date for first horizontal well
• Significant potential upgrade to Romanian Voitinel appraisal asset - potential upgrade in Voitinel trend GIIP from 50-100bcf to 400bcf
• 18% increase in Romanian forecast production - April 2010 spud date for Climauti-1 well expected to increase forecast Bilca production by 18% over next seven years
• Increased 2009 production volume and revenue - 2009 total production volumes and revenues expected to be 956.5MMscf/2.62MMscf/d and €3.0 million respectively (2008: 516.5MMscf/1.42MMscf/d and €1.9 million)

Additional prospective leads identified in Slovakia
Recent seismic processing and interpretation has identified further prospective leads in addition to the Smilno gas exploration prospect which was assessed at an Expected Monetary Value ('EMV') of €136 million, in the Company's 15thDecember 2009 Competent Person's Report produced by Gaffney Cline & Associates. Additional seismic is planned for 2010 with drilling planned for 2011.

Up-scaled €39 million Equity Placing accelerates exploration activities - recent up-scaled €39 million Equity Placing allows the Company to accelerate Polish Permian Basin exploration activities to Q3 2010 with 2D seismic planned to firm up leads in gas prone Kalisz block and 3D seismic to be used in oil prone Cybinka and Torzym blocks.

Management changes
Chris Brown joins as Director of Exploration from Suncor Energy on 1st March 2010 taking over this key role from Michael Seymour. From 1st May 2010, Michael will work part-time with the Company as an Executive Director in the role of Adviser on Government and Partner Relations.

Rowen Bainbridge, Chief Executive commented:
'In October 2009 we set out a new strategy and a series of milestones against which we could be measured. This Operational Update records steady progress against all the targets we set out. We have refocused the Company on Core Areas, added technical and operating capability at the Board and Executive levels and, through our successful €39 million capital raise, removed the financing risk that was depressing our share price. We have advanced all of our projects and, with the significant upgrade in GIIP estimate to 400 bcf on our Voitinel trend, continue with our excellent exploration track record in the region.

2010 is the year of opportunity for Aurelian as we aim to deliver on our flagship Siekierki Tight Gas Project and drill our first of many high impact Carpathian exploration wells'.