OTS:AOG Is Preparing For the Drilling of Exploration Wells in Slovakia

PREŠOV 12 January 2016 (TASR/OTS) - Exploration company Alpine Oil and Gas, s.r.o. (AOG) plans to invest approximately € 4.5 mil in exploration wells drilling this year, in northeaster Slovakia. The aim of the exploration wells, which will be executed in the cadastre areas of Ruská Poruba, Smilno and Krivá Oľka municipalities, is to determine the presence and commercial potential of naturally occurring oil and gas deposits on its 1,374 sq km of licenses.

The company plans to drill three wells (1,200 to 1,500 m deep), with one well located on each of the Svidnik, Medzilaborce and Snina exploration licenses. “Actual drilling of the first well is expected to commence within the next few weeks, followed immediately by the other wells, as they will be drilled with the same rig,” Michael P. Lewis, President of AOG, informed the journalists today.

AOG executes the exploration activities as the Operator on behalf of itself and its partners: Romanian state-owned company SNGN Romgaz SA and British public company JKX Slovakia B.V. AOG has been wholly owned by US exploration firm Discovery Polska LLC since 2014.

As Lewis also added that AOG, with its two partners Romgaz and JKX, has been involved in oil and gas exploration in this northeastern region of Slovakia since 2006, having invested more than € 18 mil. in these activities so far. The company is now entering the final phase – drilling exploration wells, to finally determine the presence of commercially productive oil and gas deposits.

Exploration wells are executed in a safe way and with respect to the environment
Exploration and production of oil and gas in Slovakia are governed by strict national and EU regulations. Moreover, all activities are subject to the rules and regulations of the Mining Office and the Ministry of the Environment of the Slovak Republic.

“Our company has extensive experience in the area of high quality exploration and production activities in many countries all over the world, e.g., in Poland, Hungary, Columbia, Australia and in the US,” said L. Ron Crow, AOG’s COO and Engineer, at today’s press conference.

AOG has been performing exploration activities in Slovakia since 2006. In the course of these activities, the company has performed geophysical surveys – seismic surveys, gravimetric measurements and magnetotelluric measurements – in order to acquire information on the subsurface rock formations without the need for drilling. However, the drilling of wells is essential to completing the exploration phase, and verifying the geological concepts.

R. L. Crow noted that, in Slovakia and nearby in Poland, the same technology is used to drill dozens of deep wells each year, not only in relation to oil and gas, but also for water wells, spas, thermal or geo-thermal water wells, etc. “We are always diligent to do whatever is necessary to protect the groundwater, and to keep it from being contaminated in any way. Standard drilling practices seal off water bearing rocks quickly while drilling. Then, high strength steel casing is cemented in place to permanently isolate those rocks. It is a very safe technology” he added.

Slovak Carpathians can contain oil and natural gas deposits
AOG (known as Aurelian prior to 2014) acquired these exploration licenses in Slovakia as early as 2006. The company geologists had been working in Poland in the areas between Polish Grybow and the Slovak border near the town of Bardejov. “They found geologic features which indicated that the Slovak Carpathians should also contain deposits,” AOG Director Stanislav Benada explained.

In the period of years 2008 to 2011, AOG performed extensive (approx. 700 km) seismic surveys. “In 2012, an airborne gravimetric survey was performed in four areas in which the best structures had been found. All that time, our geologists were mapping outcrop rocks, measuring the inclination of individual layers and taking rock samples to establish rock properties as well as microfossils,” explained S. Benada.

Production of oil in Slovakia dates back to 1913, when it was first discovered in Gbely. Since the beginning of the 20th century, oil was also sought in the areas in northeastern Slovakia where AOG plans its wells. “Oil and gas are flowing freely and naturally from depths along the joints at many places here and people are aware of them and used them, too. For example, information can be found in archives about oil extrusions along the banks of the brook in Krivá Oľka, even a house has been marked there – currently there is a garage – under which an old well is located from which oil was drawn. Moreover, oil was also extracted near Smilno, albeit in small volumes, and two one-kilometer wells had been drilled there. Also, about 20 wells were drilled near Miková and oil was extracted from very shallow depths there for almost 50 years,” added AOG Project Manager and Geologist Maciej Karabin.


In case wells are successful, municipalities as well as Slovakia will benefit from this
Geological surveys and deposit searches are expensive and rather risky. AOG and its partners, Romgaz and JKX, have already invested close to € 18 mil.

“If our exploration drilling is successful, the state would gain a new and relatively ecologically-friendly source of energy. Natural gas in particular helps to dramatically lower CO2 emissions when it is used instead of coal. Oil can help to improve the fiscal and ecological safety of the state, as oil will be produced directly in Slovakia,” said Michael P. Lewis, President of AOG.

According to him, individual municipalities have already received contributions amounting to several thousand Euros during the exploration phase, the contributions going directly to the budgets of all municipalities in the areas at which the exploration license is located. Apart from landowners who are being paid rental fees by the company, it is mainly the municipalities that are the beneficiaries of substantial mining license and extracted minerals fees. If exploration is successful, and if the project enters into the production phase, these municipalities also receive a portion of the revenues from the sale of the oil and gas.

Moreover, AOG has been employing some Slovak contractors and suppliers already during the preparation of individual well sites, and the company’s activities could generate dozens of jobs in the future, too. “Even though most of our activities today are managed by experts from Poland, Czech Republic and the US, we are actively engaging cooperation with Slovaks for the future. Slovakia has an abundance of capable people and the university in Košice produces experts specialized in relevant fields, to whom we intend to offer cooperation,” added Michael P. Lewis.

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