Aurelian Oil & Gas Announces Results of Well Fratauti-2, Bilca Gas Project, Romania

Tuesday, July 01, 2008

Highlights

• Fratauti-2 completed as a gas production well
• Well will be tied into the Bilca production facilities
• Production expected to start in September 2008 at a rate of 3 million scf/d
• Rig will now move to drill Viscani-1 exploration well

Aurelian Oil and Gas PLC announces on behalf of its wholly owned Romanian subsidiary and its partner SNGN Romgaz S.A. that the well Fratauti-2, spudded on 6 June, has been completed as a gas production well.

Fratauti-2 is located approximately 800 metres from Fratauti-1, one of three separate gas accumulations producing gas into the Bilca Facilities. It was drilled to appraise the B sand seen in Fratauti-1 where 2.4 metres of net sand was encountered. Subsequent analysis showed Fratauti-1 to have encountered the edge of the B sand gas accumulation close to the gas/water contact and provided the justification for further appraisal.

A gas column of 11.6 metres and net pay of 5 metres were encountered at a reservoir depth of 605 metres in the B sand in Fratauti-2. It has been tested at rates up to 3.7 million scf/d at a wellhead pressure of 40 bar. The well will now be tied into the flow line taking gas from Fratauti-1 to the Bilca production facilities and is expected to be producing in September 2008. Fratauti-1 produces gas from the C sand and the B sand has not been produced in that well.

The rig will now move to drill the Vicsani-1 exploration well, located approximately 200 metres from the pipeline between Fratauti and Bilca. The well has been planned to test a Seismic anomaly in the Sarmatian sands and is anticipated to spud on or around 14 July.

Percentage interests in the Fratauti-2 and Vicsani-1 wells and the Bilca gas project are: Aurelian (operator) 62.5%, Romgaz 37.5%.

Michael Seymour, Aurelian’s Managing Director, commented:
“We are very pleased that the first well in the 2008 4-well programme has been successful and will increase gas sales through the Bilca production facilities. Production from the existing three wells is also about to be boosted as a result of the installation of compression and success with the Vicsani well could add further value to the project.”

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