Romanian Brodina Well Abandoned

Aurelian Oil and Gas's explorations hit a snag today as the company announced that it would be abandoning its Horodnic-1 well in the Brodina Exploration Area as it is unlikely to be commercially viable.

The company made the announcement in a statement this morning and says that the well is now being plugged and abandoned following gas level testing.

Chief Executive of Aurelian Rowen Bainbridge said the company will use the information gleaned from the well to further its interests in the area.

"Whilst the primary objective section in Horodnic-1 was encountered, it is disappointing that it does not appear to contain commercial quantities of gas," he said.

"That said, this low cost commitment well has significantly increased our understanding of the Voitinel trend and also provided interesting reservoir indicators of a separate structure, that we are currently assessing using seismic acquired earlier in the year. 

"The partner group will use the information gained from Horodnic-1 to further inform our appraisal activities and choice of subsequent well location on this interesting trend. A further update will be provided in the coming months."

The well, located in a sand-prone interval within the Sarmatian-Badenian section, was plugged after wireline logging was completed.

Within the primary objective section, a gross interval of approximately 40 metres of interbedded sands and shales was encountered. However, elevated gas readings were restricted to the topmost section indicating that the interval is likely to be un-commercial.

The total cost of the Horodnic-1 well is forecast at €2.5 million, Aurelian said. This is lower than the original forecast of €3.5 million. Aurelian's portion of the cost is approximately €0.84 million. 

Aurelian holds a 33.75 percent stake in the Brodina Exploration Area. Other partners in the project are S.N.G.N. Romgaz at 37.5 percent and Europa Oil & Gas at 28.75 percent.