Companies: AUL   

Canamens Energy is to pay up to £32.3 million to earn 40 per cent of Aurelian Oil & Gas’s Poznan concessions.

Under the farm-in agreement between the two London-based companies, Canamens, an independent oil and gas concern with backing from Goldman Sachs and others, can earn this stake by meeting 80 per cent of Aurelian’s 90 per cent share of the costs of developing the concessions, including the key Siekerki gas project, up to a maximum €40 million. The deal means that AIM-quoted Aurelian will bear 10 per cent of the work programme expenses and retain a 50 per cent interest in the concessions.

Aurelian’s managing director, Michael Seymour, argues that the farm-out ‘should secure sufficient funding to take this project to the next commercial stage of its development’. Floated two years ago at 55p, Aurelian shares had fallen all the way to 16.5p earlier this month, but have now rallied to 25p, at which level they value the company at £33.9 million, and might fare better than some others in the sector.  

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Aurelian Oil & Gas	AIM	£23.73m	17.50p	1.00p
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Aurelian clinches Polish deal			10/11/2008
Aurelian wins Polish concession			02/07/2008
Aurelian			07/04/2008
Aurelian hails Polish progress			04/04/2008
Aurelian probes Polish prospects			08/02/2008