Aurelian Secures Funding for Future Development

Aurelian Oil & Gas has conditionally raised €100m (approximately €95m net of expenses), to allow it to significantly expand its exploration work,  adding 12 new wells to the original 5 well programme., establishing two new businesses in its existing core areas and creating two potential new strategic alliances to capture complementary acreage.

Chief executive Rowen Bainbridge emphasised that Aurelian can now capitalise on it first mover advantage.

“Aurelian now has a strong platform to take advantage of a number of exciting opportunities in a stable and energy hungry part of the world,” Bainbridge said.

“The proceeds from this capital raise will ensure that our 17 well exploration and appraisal programme is fully funded thus enabling us to realise the maximum potential of our asset base.”

"We are now funded to achieve first production from our Siekierki Tight Gas project in Q1 2012 and to create a business of real substance for our for our shareholders."

The Company plans to drill the Trzek-3 appraisal well back to back with the Trzek-2 appraisal well, which is currently drilling, and to bring the Siekierki Tight Gas Project into early production in Q1 2012.

The Company aims to further exploit the potential of Siekierki, drilling one exploration well in Siekierki South West and another in Siekierki North West. Three wells will also be drilled in the Carpathian Thrust Fold belt (two in Poland, Bieszczady Block and East Karpaty, and one in Romania, Cuejdiu Deep oil);

Aurelian is planning to allocate allocating €26.7 million to develop potential new strategic alliances in its ‘Tight Gas’ and Carpathian Thrust Fold Belt core areas.

These strategic alliances will involve the drilling of two exploration wells, seismic and technical studies for future initiatives; and €20.0 million for additional seismic and drilling in core areas before the end of 2012.

Separately €3.6 million will fund a work-over and an exploration well in a newly established Carpathian Conventional Gas business, in the 60 percent owned Karpaty West licence.

Also, two exploration wells will be drilled as part of a newly established ‘Reef Oil business’, targeting the Cybinka and Torzym licences in the Permian basin (Aurelian is operator and 35% interest holder in each licence).

Source: Aurelian Oil & Gas