Aurelian Provides Operational Update

Aurelian Oil & Gas gas provided an operational update.

First Siekierki Multi Fracced Horizontal Well (“MFHW”) Trzek-2 successfully completes horizontal section encountering 1378.5 metres of Gas. Now ready for fracture stimulation
o Horizontal section successfully completed encountering 1378.5 metres of Rotliegendes Gas with potential sweet spots and porosities of up to 15%;
o Well now ready for up to 10 stage fracture stimulation;
o Ongoing severe weather expected to delay flow test to January;
o Trzek-2 still expected to complete within Budget; and
o Trzek-3 expected to spud early January.

First Bieszczady well drilling ahead with Target Depth (“TD”) expected by end February 2011
o Currently drilling ahead at 2700 metres targeting a maximum TD of 4800 metres by end of February 2011; and
o Well targeting prospective resources of up to 100 million barrels (gross) of oil in Carpathian Thrust Fold Belt Core Area.

Siekierki Gas Processing Facility continues to progress
o Final contract close to being agreed for major Long Lead Nitrogen Removal Unit (“NRU”) required to treat Siekierki gas to sales quality; and
o Construction start date of early 2011 and first gas production target of end of 2011.

1,455 km of 2D and 3D seismic to be acquired across eight surveys in Core Areas in 2011
o Partner budgets agreed for significant seismic investment in Core Areas in 2011; and
o Surveys aim to increase the size of Siekierki Tight Gas project, and in the Carpathian Thrust Fold Belt, to firm up 2011/12 drilling prospects and identify new drilling targets for 2013 and beyond

Rowen Bainbridge, Aurelian's Chief Executive commented:

“Successfully completing the horizontal section and encountering such an extensive section of gas is a very good outcome in this first well in our 346 bcf Siekierki Tight Gas Project. Whilst the severe weather in Poland will delay the results of the flow test for approximately four weeks, we are nonetheless very pleased to be in a position to be able to finish this first well on budget."

Aurelian Oil & Gas is focused on Central Europe with licences in Poland, Slovakia, Romania and Bulgaria, and it is the operator of most of its licences. Aurelian's strategy is to apply proven technologies utilised in the rest of the world that have as yet not been applied in their operational areas due to the history of the region.

Aurelian's most significant current asset is the Siekierki gas field in Poland, which is a tight gas accumulation that will be developed utilising horizontal drilling techniques and multi-stage frac’ing similar to those used in North American gas plays.

The company recently announced it intended to exit areas it deems non-core, most notably Romania and Bulgaria, and focus on the Rotiegendes in Poland and the Carpathians in Poland and Slovakia.

Source: Aurelian Oil & Gas