Aurelian's Bottom Line Hit by Siekierki Disappointments

Aurelian Oil and Gas has said that it is still confident for the year ahead, despite a difficult 2011 which saw the company experience technical difficulties and lower than expected flow rates from the Siekierki field in Poland.

The company says it has learned from the difficulties it faced last year with "important technical lessons" now being applied to its operations. The company ended the year 2011 with major losses, with pre-tax losses amounting to €8.65 million. 

However, with cash reserves of €63.4 million, the company says it is still confident on continuining its work programme for 2012, with up to 10 exploration and appraisal wells planned for Poland, Slovakia and Romania.

"Despite 2011 being a challenging year for the company, with operational difficulties and lower than expected initial flow test rates on our Siekierki asset, our confidence in the attractiveness and materiality of Siekierki has been reaffirmed by the  forthcoming CPR and we have learnt significant lessons which we are now applying to on-going operations," CEO of Aurelian Rowen Bainbridge said today.

Estimates for the Siekierki project from this CPR (Competent Person's Report) estimates total contingent resources at 422 billion cubic feet, Aurelian said today, with gas-initially-in-place of 1,992 billion cubic feet.

"The Siekierki project is a fundamental part of the Aurelian portfolio and we remain committed to bringing this significant gas resource to market," Mr. Bainbridge said today. "We are also continuing with the review of strategic options, and the maximisation of shareholder value remains our top priority. Aurelian is a well-funded company with high quality assets and a talented and motivated team of people and we look forward to 2012 with renewed confidence."