Business
Romanian Gas Discovery
Romanian Gas Discovery.
About this update from Europa Oil & Gas (holdings) Plc
[{"type":"text","content":"\n \nLilieci-1 Gas Discovery\n\nThe Directors of Europa Oil & Gas (Holdings) plc are pleased to announce the\ninitial drill stem test results from the Lilieci-1 well, situated in the EIII-4\nBacau Concession, onshore Romania and operated by Aurelian Oil & Gas srl.\n\nProduction logging measurements indicate that total of 10 metres of\nperforations between 2,412 and 2,584 metres depth flowed dry gas on test at a\nsustained rate of 4.6 million cubic feet per day (750 barrels of oil equivalent\nper day) with a wellhead flowing pressure of 165bar. The well will be\nre-completed for a long-term test in order to better assess appraisal/\ndevelopment options.\n\nUnder the terms of a farmout agreement, Europa's share of the original estimate\nof the well costs are borne by Aurelian. The well costs, however, exceeded the\noriginal estimate and Aurelian further agreed to pay Europa's share of the\nadditional well cost. Under this further agreement, Europa must elect whether\nor not to participate in the appraisal/development of the Lilieci gas discovery\nwithin 60 days of the completion of well operations on Lilieci-1. Such election\nwould trigger a payment in respect of the additional well costs to Aurelian of\nan estimated £4 million in order for Europa to retain its 19% working interest\nin the Lilieci discovery.\n\nThis success materially upgrades the Bacau Concession, where Europa retains a\n19% working interest in the remainder of the Concession regardless of its\nelection with respect to the Lilieci Discovery. The large (1,200km2) Bacau\nConcession is relatively underexplored, considering its location in the play\nfairway close to the 850bcf Roman Field.\n\nThe Lilieci-1 test result also lends significant weight to the Directors'\nbelief that the Boistea-1 well, in which a similar quality gas-charged\nreservoir underperformed on test as a result of induced formation damage, is a\nkey candidate for remedial action and subsequent development.\n\nManaging Director, Paul Barrett, said \"This test is an excellent result from\nreservoir intervals interpreted from wireline logs as `borderline pay' before\ntesting. The quality of this test indicates the flow performance to be expected\nfrom undamaged formation in the deeper Sarmatian play and points to a need for\na re-assessment of historic well data on the Concession.\"\n\nThe t...