Last checked at 21 Jun 2010 07:00
Romanian Operations Update
The Directors of Europa Oil & Gas (Holdings) plc are pleased to provide a joint venture announcement being made today by the Operator, Aurelian Oil & Gas plc, regarding the Romanian operations:
`Ongoing Appraisal of Voitinel/Solca trend - Result of Flow Test of 1400 sand
The 1400 sand in the Voitinel-1 well, which accounts for approximately 12% of total gas-in-place across the wider Voitinel/Solca trend, has been perforated and flowed gas at 10,000 scf/d with no water production. Further appraisal is likely in future appraisal wells where core can be obtained and fracture stimulation undertaken to increase production rates. Aurelian believes that the wider Voitinel/Solca structural trend could have gas-in-place volumes up to 400bcf and that it may be possible to recover up to 6bcf per well from the 1650 sand tested in May and, on the 1400 sand, up to 3bcf per well on the assumption that fracture stimulation is successful.
The reprocessing of the available seismic to incorporate the results of the Voitinel-1 well has been completed and the structure is currently being remapped. The results of this should be available in July/August and will enable the Company to provide a more accurate assessment of total gas-in-place across the trend. In addition, seismic contractor Prospectiuni has been appointed to acquire 60km of 2D seismic principally to detail the Solca trend to allow a site to be selected for a possible well in Q4 2010.
Interests in the Brodina block are held by Aurelian Oil & Gas (Romania) SRL (33.75%), S.N.G.N. Romgaz S.A. (37.50%) and Europa Oil & Gas SRL (28.75%).
Bacau 2D seismic survey commences targeting leads of 147bcf of gas-in-place
Work has commenced on a 70km, 2D seismic survey (44km on Bacau North and 26km on Bacau/Lilieci) on three prospective areas within the northern and central areas of the Block. As a result of reviewing the overthrust area of the block for the first time, the Company has identified additional leads and therefore the survey is now targeting gas-in-place leads of 147bcf, an increase of 119% from the previously announced 67 bcf. In summary, two areas are prospective for Sarmatian biogenic gas prospects in the north eastern area and one for thermogenic gas/condensate in the overthrust area of the East Carpathians. This survey will be interpreted by the end of August 2010 and it is hoped that it will further define prospects for drilling in the future.
Interests in the Bacau North block are Aurelian Oil & Gas (Romania) SRL 41.0%, S.N.G.N. Romgaz S.A. 40.0% and Europa Oil & Gas SRL 19.0%. Interests in the Bacau Lilieci block are Aurelian Oil & Gas (Romania) SRL 60.0%, S.N.G.N. Romgaz S.A. 40.0%.'
Paul Barrett, Managing Director of Europa, said `This test confirms free gas in the 1400 sand at Voitinel which will be incorporated into the development plan for the discovery, of which the main 1650 reservoir, successfully fracced in May, currently holds the majority of potential reserves. We are looking forward to the Operator's presentation to partners on revised reserve estimates in early July and will inform shareholders in due course.
Despite our very strong acreage position in the play, we feel we have only scratched the surface so far in assessing the prolific Oligo-Miocene oil fairway of the Romanian Carpathians, which has produced 5 billion barrels to date. Consequently, the seismic program this year across the Bacau and Cuejdiu Blocks will go a long way to providing a strong exploration prospect flow for the next few years. The first of our oil prospects, Barchiz, is expected to be drilled in the Brates Block later this year.'
For further information, please contact:
Europa Oil & Gas Paul Barrett 01235 553266Astaire Securities Shane Gallwey 020 7492 4775Astaire Securities Jerry Keen 020 7492 4750
EUROPA OIL & GAS (HOLDINGS) PLC