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Whilst San Leon holds 33.125% in the Brodina concession, as of 17 May 2012, it holds 50% and is operator of the non-Bilca gas project area in Brodina. Recent appraisal work on the Brodina licence has been directed towards appraising the Voitinel gas discovery that was drilled in Q2 2010 and achieved 2.5 mmscf/d during a flow test. Voitinel is a large sub-thrust 4-way dip closure at less than 2,000 metres depth which is on trend with producing assets in Ukraine.
Horodnic-1 well site
The deviated Horodnic-1 appraisal well, drilled in Q4 2011, was designed to follow-up the Voitinel-1 gas discovery at a distance of 2.5km to the south-east. Horodnic-1 reached a TD of 1,660m MD (983m TVDSS) and targeted a sand-prone interval within the Sarmatian-Badenian section which had been encountered in the Voitinel-1 well. Within the primary objective section, a gross interval of approximately 40m of interbedded sands and shales was encountered.
However, elevated gas readings were restricted to the topmost section indicating that the interval was not commercial in this area. The well was plugged and abandoned.
More encouragingly, Horodnic-1 encountered additional, well developed sands near TD, below the regional Badenian Anhydrite. These “Infra-Anhydrite” sands form a target reservoir in separate structures which are currently being evaluated using seismic data already acquired in 2011. This information will be used by to help de-risk the drilling of the next well on the concession.
As well as drilling the Horodnic-1 appraisal well in 2011, 166km of new 2D seismic data was acquired. Interpretation of previous years’ 2D seismic data led to the survey design in three areas of the block: data in-fill around the 2009 Voitinel-1 discovery well; in-fill on the Solca prospect in the south part of the concession; and new lines seeking to unlock the potential in the underexplored thrust belt in the western part of the block.
In the western part of the block, four straight-line 2D seismic lines were acquired. These lines will form the basis for defining the potential of the thrust belt fraction of the area, on trend from adjacent discoveries in the Ukraine to the north and the Romgaz “North Moldavia 04” concession to the south. These lines were simultaneously processed by several contractors in order to increase confidence in the results.
During 2012, work on Brodina continued with the “Gore® Amplified Geochemical ImagingSM” survey and Magneto-Telluric survey confirming the presence of sub-thrust structures in the target area. A seismic survey of 168 line-km shooting was also performed. In July 2012, the NAMR (Romanian regulator) approved the new composition of the JV working interest equity levels for Aurelian (50%) and Romgaz (50%) in respect of the non-Bilca Gas Project Area in Brodina.
The current licence phase includes a commitment to drill a well on the concession.
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