7th Apr 2008 07:00
Aurelian Oil & Gas plc07 April 2008 Aurelian Oil & Gas PLC Farmout of Interest in Slovak Licences Svidnik, Medzilaborce and Snina Aurelian Oil and Gas PLC ("Aurelian" or "the Company"), on behalf of itsSlovakian subsidiaries which hold the Svidnik, Medzilaborce and Snina licences("the Licences") in Slovakia, is pleased to announce that it has reachedagreement with JKX Oil & Gas plc ("JKX") for JKX subsidiaries to acquire a 25%interest in each of these three licences. Aurelian will retain the remaining 75%and the operatorship. Upon completion, JKX will reimburse a 25% share of the historical costs borne byAurelian on the Licences up to 1 January 2008. JKX will then meet 50% of thefirst €3.2 million of the cost of the seismic programme planned for the summerof 2008. Aurelian will be responsible for the balance of the cost of theprogramme up to a maximum of a further €3.2 million. Thereafter JKX will bear25% of all costs and Aurelian will bear 75%. These arrangements are subject to any necessary approvals of the Slovakianauthorities. The licences cover an area of 2,278 sq km (the equivalent of approximately 10North Sea Blocks) in the heart of the Carpathians, adjacent to the Polishborder. On the Polish side of the border, there has been significant oilproduction since the middle of the nineteenth Century. The Slovakian sideremains largely unexplored, although oil has been produced from a small shallowoilfield on the Licences and three deeper exploration wells encounteredsignificant hydrocarbon shows several decades ago. Almost no seismic has beenacquired to date. Aurelian, as operator, has to date conducted geological fieldwork on theLicences, which has confirmed their potential. The contract for the acquisitionof a seismic survey of 238 km of 2D data is being finalized with GES of Hungaryand recording is expected to commence around 1 June. The technical information and opinions contained in this announcement have beenreviewed by Roy Hartley B.Sc (Hons) (Imperial College), FEI, FGS, C.Eng,Aurelian's Operations Director who has over 30 years' experience in the oilexploration and production industry. He has consented to the inclusion herein ofsuch technical information and opinions. Michael Seymour, Aurelian's Managing Director, commented: "These Slovakian blocks possess all the ingredients needed for the presence ofsignificant hydrocarbon fields and they are close to producing wells in Polandand the Ukraine. However, they are virtually unexplored. Given the rough terrainand the costs of acquiring meaningful quantities of seismic data, it makes sensefor us to bring in a partner at this stage and we are very pleased to introduceJKX as our partner in this project, having worked with them before in Bulgaria.JKX brings a wealth of experience of working in this part of Europe and theUkraine. " 7 April 2008 Enquiries: Aurelian Oil & Gas 020 7629 7986Michael Seymour, Managing DirectorFrank Jackson, Commercial Director Nabarro Wells & Co. Limited 020 7710 7400Richard Swindells College Hill 020 7457 2020Nick ElwesSimon Whitehead www.aurelianoil.com Notes to Editors: Aurelian Oil & Gas PLC, was founded in December 2002, by Managing Director,Michael Seymour to focus on the established oil provinces in the centralEuropean countries of the former CIS where there had been little investment inseismic and drilling technology during the previous 20 years. The Company hassince developed rapidly from a pure exploration company into its presentposition with a wide portfolio of concessions in Poland (5), Slovakia (3),Romania (4) and Bulgaria (2), and a range of production, appraisal andexploration projects. The near-term focus is aimed at establishing substantial production whilecontinuing to build up potential for future development with a dynamicexploration programme across the region The Poznan East project is the key toshort term development and by 2010/2011 should be producing substantialquantities of gas and commensurate revenues. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
JKX.L