Aurelian Reorganizes Romanian Operations

Aurelian Oil & Gas has reorganized its Romanian operations to focus on its Carpathian Fold Belt core area.

The firm says that a newly-established subsidiary, Aurelian Petroleum  SRL, will assume operatorship of the Voitinel discovery and oil exploration in the Cuejdiu concession and the Brodina exploration area of the Brodina concession.

Aurelian has also agreed to sell Aurelian Oil and Gas Romania (AOGR) to Raffles Energy Netherlands, a subsidiary of the Raphael Group, a large Private Equity investor that has a significant focus in natural resources, energy projects and commodities trading.

AOGR holds the remainder of the company's Romanian interests - the Bilca gas project area of the Brodina concession, the Suceava concession, and the Bacau North Areas (A and B) of the Bacau concession.

Aurelian will receive an initial payment of between €6.3m and €6.8m made up of a 'base' cash consideration of €5.3m plus further cash consideration of €1m-€1.5m depending on final working capital and other completion adjustments. In addition, there is a deferred cash consideration structure with payments starting on first production for each discovery equating to €50,000 for each billion cubic feet of gas discovered and €300,000 for each million barrels of oil discovered.

Source: Aurelian Oil & Gas