Aurelian Falls Short at Trzek-3

Aurelian Oil & Gas PLC has met with a setback at it Siekierki tight gas project near Poznan in west-central Poland, after initial data from the Trzek-3 Multi Fracced Horizontal Well (MFHW) indicates that the gas recovery from the appraisal well is lower than anticipated

Initial data from Trzek-3 indicates that the gas recovery from the appraisal well is lower than anticipated at 4-8 bcf rather than the 16-20 bcf the company anticipated. Flow tests will continue to the end of September.

Aurelian will continue flow testing until the end of September when it will provide a further update on the well test, its ongoing appraisal plans and the subsequent timing of commercialization from the existing three wells at Siekierki tight gas project. In the interim, Aurelian is suspending plans for a sidetrack at the Trzek-2 well

Chief executive Rowen Bainbridge said: "This news is disappointing and we are determined to understand the reasons why gas rates are lower and water rates higher than we had anticipated. Despite this, the Siekierki tight gas reservoir has a mid case of 1.6 trillion cubic feet of Gas In Place and covers approximately 150 square kilometres, with appraisal wells to date covering only 2.5 square kilometres of the reservoir. “

“Until we understand these preliminary results, we are protecting the company's capital. Therefore, we are suspending plans for the Trzek-2 side-track and reviewing the possibility of gas sales from the existing three wells," he added.

The Poznan licenses are held by Energia Zachod Sp. z.o.o., a company owned 90% by Aurelian and 10% by Avobone NV.