Aurelian Oil & Gas has begun drilling the first multi fracced horizontal appraisal well, Trzek-2, on the Siekierki field in the Poznan licenses in Poland. The well will be drilled 4,150m vertically to evaluate the Rotliegendes reservoir (expected in three months), before being sidetracked and drilled approximately 1,500m horizontally towards the Trzek-1 well (expected to take a further 6-8 weeks).

"We are delighted to have achieved an 'on schedule/on budget' spud of the first multi fracced horizontal appraisal well at our flagship Siekierki project in Poland; the first well in the appraisal phase of this project,” Aurelian chief executive Rowen Bainbridge commented.

Once both the vertical and horizontal sections of Trzek-2 have been completed, a Halliburton fracture stimulation crew will be mobilized to carry out up to 10 fracture stimulations in sequence. Aurelian highlighted that Multi Fracced Horizontal Wells (MFHW) are a proven technology in shale and tight gas developments globally.

“This is also the first well of its kind to be drilled in Poland. MFHW is the prime technology used to unlock the potential of tight Rotliegendes sands and has been used with considerable success in Europe as well as in the US shale plays. This well represents a significant step forward in de-risking tight gas in central Poland,” Bainbridge added.

Aurelian noted that the precise details of the fracing operation will depend on the reservoir properties encountered, and a flow test to determine the productivity of the stimulated well is expected to commence in late November, with the results to follow in December.

Trzek-2 is targeting approximately 16 - 28bcf of recoverable gas reserves on the Siekierki field (346bcf net to Aurelian) which is expected to come-on stream in the second half of 2011. Upon Trzek-2’s completion the Nafta Pi?a's IDM 2000 drilling unit will move on to the Trzek-3 well site.

Aurelian has a 90% interest in Siekierki, through its stake in Energia Zachod Sp. z.o.o, which owns 100% of the Poznan licenses which host the project. The remaining 10% of Energia Zachod is owned by Avobone NV.

Last month, Aurelian highlighted that planning and permitting at Siekierki remains on schedule, with approval of two pilot stage appraisal wells, and the Environmental Impact Assessment for the Gas Processing Facility and Flowlines expected to be submitted shortly.

The company expects to receive a Construction Permit in Q4 2010, enabling construction to begin in 2011, subsequently leading to gas sales in the second half of the year. Aurelian said that it intends to order the Processing Facility’s long lead items at the end of June.

Elsewhere in the Cybinka/Torzym licenses, Aurelian has now started a 220km2 3D seismic survey to delineate 100mmbls of unrisked prospective resources. The survey will straddle the two licenses in the proven Zechstein Reef play of Aurelian's Permain Basin Core Area.

“This will also be the first time that modern 3D seismic has been acquired across the oil focused Cybinka and Torzym licenses in our Permian Basin Core Area. We are confident that the acquisition of this 3D seismic survey, targeting leads of approximately 100mmbbls, will enable reliable mapping of the region, de-risking exploration drilling and identifying drilling targets for our 2011 and 2012 program", Bainbridge stated.