Aurelian Oil & Gas plc is receiving encouraging results from its unconventional prospects in Poland.

Aurelian has begun its stabilized flow rate test on its first Siekierki multi-fraced horizontal well (MFHW) Trzek-2. Progress is as follows:

  • Stabilized flow rate test delayed by two weeks due to mechanical problems during well clean up. Gas inflow in six of the ten well bore sleeves currently restricted. Likely cause is either clean up debris lodged in sleeve ports or sleeve ports being temporarily closed.
  • Reservoir quality good, with tracers confirming that gas was recovered from all ten fraced zones during initial production test. Down-hole logs also confirm good quality reservoir throughout horizontal wellbore.
  • If these well bore sleeve mechanical problems persist after the end of the stabilized flow test, appropriate remedial work will be undertaken.
  • Stabilized rate at the end of the 14-21 day test is likely to be less than the 8mmscf/d that the Company had originally expected. However, good reservoir quality indicators and expected lower production decline rates means that Aurelian should still recover 16-28 bcf from this well and 346 bcf (net) from 20 wells across the full project.

In addition to its Trzek-2 well, the company’s second Siekierki MFHW, the Trzek-3, is drilling ahead of schedule. Currently, 3,699 meters of the well have been cased. The company notes that drilling performance has been optimized due to the learning curve achieved from the Trzek-2. Aurelian has stated that an update on the size of the gas column as well as the reservoir quality will be provided in April. Stabilized flow tests are expected by late June or early July.

"The Trzek-3 well is performing better than we had hoped and we will have stabilized flow rates from both MFHWs by the end of June/beginning of July which will help us optimize the development of this key project," said Rowen Bainbridge, chief executive.

Additionally, the company’s first Bieszczady well targeting prospective resources of up to 100 million barrels (gross) encounters active oil and gas system in zone above primary targets. Aurelian notes that the well displayed ‘excellent’ oil and gas shows and oil flow during two drill stem tests. Currently, Aurelian is drilling on to reach its primary oil targets, which rest between 4,000 and 4,800 meters. Acquisition of additional 300 km of 2D seismic has been completed and will be interpreted later this year, block coverage now 40%. A second well in program expected to spud during late 2011 or early 2012.

"The Bieszczady well update is encouraging and the existence of an active oil and gas system above our primary targets provides us with further options as to how we may commercialize this well in the future," said Bainbridge.

The company is also encouraged by the confirmation that there will be no restrictions on the development of Polish unconventional gas. Henryk Jesierski, the chief geologist at the Polish Ministry of Environment, confirmed that Poland will not be blocking unconventional and shale gas development on March 16.