24.02.2010

Portfolio companies update with respect to Aurelian, Energia Zachód, Kalisz and Cybinka/Torzym

Extracts from an Aurelian Oil & Gas PLC press release dated 24 February 2010

The Avobone companies mentioned in the release are 100 % owned by the Indofin Group.

Aurelian, the Central European focused E&P Company, is pleased to provide the following operational update on its core areas of activity, key projects and corporate developments

Highlights

·      Signing of key contracts in Siekierki Tight Gas Project in Poland - signing of key Engineering, Procurement and Construction Management services ("EPCM") and Drilling contracts, firms-up June 2010 spud date for first horizontal well

 ·      Up-scaled €39 million Equity Placing accelerates exploration activities - recent up-scaled €39 million Equity Placing allows the Company to accelerate Polish Permian Basin exploration activities to Q3 2010 with 2D seismic planned to firm up leads in gas prone Kalisz block and 3D seismic to be used in oil prone Cybinka and Torzym blocks.

 ·      Management changes- Chris Brown joins as Director of Exploration from Suncor Energy on 1^stMarch 2010 taking over this key role from Michael Seymour. From 1^stMay 2010, Michael will work part-time with the Company as an Executive Director in the role of Adviser on Government and Partner Relations. 

EPCM contract signed for Siekierki project

Aurelian, is delighted to announce that it has awarded an EPCM contract for the appraisal phase of its Siekierki tight gas project in Poland to the Warsaw office of ILF Consulting Engineers ("ILF"). The contract was awarded through Aurelian's 90% owned Polish subsidiary Energia Zachód Sp. Z o.o. ("Energia Zachód" or "EZ"), which holds and is operator of the Exploration licence. The EPCM contract covers 3 flowlines, a 'Pilot' Central Production Facility to treat the gas to sales quality, an export line with pressure reduction and metering station and tie-in to the high pressure gas network. The facility will be designed to produce and treat up to 11MMscf/d during the initial Pilot phase with these facilities being upgraded during full field development to a processing capacity of up to 106 MMscf/d. First gas sales should commence in the second half of 2011.

Signing of Nafta Pila Drilling Contract and June 2010 spud date advised for first Siekierki horizontal well

Energia Zachód will sign today a final Contract with Nafta Piła for the first horizontal appraisal well Trzek-2, 2km to the southeast of Aurelian's Trzek-1 well, which was drilled, fracced and tested gas at 7.5MMscfd in 2007.

The Siekierki project is located in the Poznan licences which are 100% held by Energia Zachod, a company owned 90% by Aurelian and 10% by Avobone N.V. 

Kalisz, Cybinka and Torzym licences

In addition to being funded to drill the first Siekierki well and up to seven exploration and appraisal wells in the next two years, Aurelian's recent up-scaled Equity Placing of €39m has also enabled it to accelerate its exciting exploration activities in its Kalisz, Cybinka and Torzym licences in the Permian Basin of North West Poland.  

Kalisz - The Kalisz block is located along the same trend of the Rotliegendes currently being exploited by PGNiG/FX Energy in their Fences concession which lies immediately south of Aurelian's Poznan East and North blocks. PGNiG/FX Energy have a number of discoveries which, although much smaller than Aurelian's Siekierki structure, do exhibit attractive porosity and permeability characteristics. Existing seismic on the Kalisz block has identified an interesting gas lead, Stawizyn which appears to be similar in nature to the above mentioned discoveries made by PGNiG/FX Energy and this proposed additional seismic will better define this lead for drilling in late 2011/early 2012.

Interests in Kalisz are Aurelian Oil and Gas Poland Sp. z.o.o. (50%) (Operator), GB Petroleum Limited (40%) and Avobone Poland B.V. (10%).

Cybinka/Torzym - 3D seismic will be obtained on these two oil prone blocks in Q3 2010.  Both blocks are close to the largest oilfield in the Central Lowlands of Poland, the Lubiatow complex, currently being developed with reserves quoted at 60 million barrels of oil and 271 bcf of gas. Lubiatow's oil and gas is in Zechstein carbonates deposited as downslope wedges along the front of the Main Dolomite barrier reef. These reservoirs are being explored using seismic attribute work obtained from 3D surveys. Two smaller fields of an identical nature, Sulecin and Kamien Maly, are located to the immediate north of the Cybinka and Torzym concessions and the reef front passes through the middle of Aurelian's blocks.  Drilling at Cybinka and Torzym is expected late 2011/early 2012.

 Interests in Cybinka/Torzym are Aurelian Oil and Gas Poland Sp. z.o.o. (35%) (Operator), GB Petroleum Limited (25%), Avobone Poland B.V. (10%) and S.N.G.N Romgaz (30%)