Regent Ventures Ltd RGVNF

Aurelian Update

[d22j]

Strange day!! 
Today we have a positive update from Aurelian, which should have created some interest in EUGS and REV. Instead we get a 30% decline in EUGS on low volume and no REV trades.  

First Bieszczady well encounters active oil and gas system in zone above primary targets.

The Bieszczady partner group is pleased to announce that the Niebieszczany-1 well, which spudded on 14th October 2010, and is the first well of a three well programme in its Bieszczady block in the Carpathian Thrust Fold Belt, has set 9 ? inch casing at 3,220 metres and is currently drilling at 3,700 metres. The section drilled from 1000 metres to the current depth consists of interbedded fractured tight sands and shales and excellent oil and gas shows have been encountered throughout which appear to be associated with fracture zones. Wireline logs were taken over the interval of 1,000 metres to 3,226 metres prior to setting casing and a total of 46 metres of core has been cut in three separate zones. In addition, two short term drill tests have recovered oil and gas.

The active oil and gas system is over pressured and the current mud weight required to balance formation pressures is 1.85 sg (Specific Gravity) compared to normal sg of 1.1. The combination of fractured formations and an active over pressured oil and gas system has however resulted in slower than predicted progress. Cost exposure to the slow progress of this well is mitigated due to the fixed cost nature of the contractor’s turnkey contract.

Whilst the section drilled to date is encouraging and contains zones of interest, the primary reservoir targets which are expected between 4,000 metres and 4,800 metres are yet to be reached. The well is targeting up to 100 million barrels (gross) of oil and there are several other similar sized prospects on trend which would be derisked in the event of a successful outcome of this first well.

Acquisition of a further 300 km of 2D seismic to the north and east of the existing 2D area is now complete, giving coverage of 40% of the block. A second well is planned to commence in late 2011/early 2012 after interpretation of this seismic and integration of the current well data.

Interests in Bieszczady are Polskie Gornictwo Naftowe i Gazownictwo (51%) (Operator), Energia Bieszczady Sp. z o.o. (25%) (a 100% subsidiary of Aurelian Oil and Gas Poland Sp. z o.o.) and Eurogas Polska Sp. z o.o. (24%).