4 January 2012

Aurelian Oil & Gas PLC

("Aurelian" or "the Company")

Award of two new Polish licences

Aurelian, the European focused E&P Company, is pleased to announce that it has been awarded two new licences by the Ministry of Environment in Poland.

·      Award of New Concession in our Polish Carpathians Core Area

o  Awarded 100% of the "Wetlina" concession in south-eastern part of Polish Carpathians, covering an area of 446km2;

o  Close to Aurelian's highly prospective Bieszczady concession in Poland, where the Company is currently testing the Niebieszczany-1 well, and adjacent to Aurelian's Snina concession on the Slovakian side of the border;

o  Undeveloped Wetlina gas discovery is within concession and two further structures identified with potential in-place resource estimated at 40 BCF and 25 MMBBL; and

o  Work programme consists of studies in Year 1 and 14.3km 2D seismic acquisition in Years 2-3

·      Award of New Concession in our Polish Permian Basin Core Area

o  Awarded 100% of the "Prusice" concession in central Poland in the South Permian Basin, covering areas of 758km2; and

o  "Prusice" concession, adjacent to San Leon's Winsko licence, is believed to be prospective for the emerging Carboniferous Shale gas play. 

o  Work programme consists of studies in Year 1 and 100km 2D seismic acquisition in Years 2-3.

John Smallwood, Exploration Director said:

"These awards enhance our portfolio in each of our two Core Areas with attractive prospects to mature with low cost work programs and risk profiles. The presence of hydrocarbons is well-established both regionally and locally within each of the new concessions. In addition, our 100% equity position gives us control over the execution of the exploration programmes. Prusice also gives us low cost entry to an emerging shale gas play which aligns well with our technical and operational expertise. We will be looking to bring partners into both blocks to fund the work programs."

Enquiries:

Aurelian

Rowen Bainbridge, CEO

020 7245 4999


Ambrian Partners Limited

Nominated adviser

Richard Morrison

Jen Boorer

020 7634 4856


Oriel Securities

Joint broker

David Arch

Ashton Clanfield

020 7710 7600


Macquarie Capital (Europe) Limited

Joint broker

Paul Connolly

John Dwyer

020 3037 2000


College Hill

Public relations adviser

Nick Elwes

Catherine Maitland

020 7457 2020


Award of New Concession in our Polish Carpathians Core Area

Aurelian has been awarded a 100% interest in the "Wetlina" concession which lies in the south-eastern part of the Polish Carpathians and is close to the Bieszczady permit, in which Aurelian is a partner, and the Aurelian-operated Snina concession on the Slovakian side of the border. It covers parts of concession blocks 477 and 478. The concession consists largely of the Silesian Nappe structure of the Carpathian Fold and Thrust belt, an area in which hydrocarbon production has been prolific in the Bieszczady concession, where the Niebieszczany-1 well is currently well testing.

The new Wetlina concession has an area of 446.29km2 and includes the Wetlina gas field.  This field was discovered in 1965-1970 with gas reservoired in sandstones of the Oligocene Krosno and Menilite Formations.  A gas inflow, composed of >99% methane, of 41 Nm3/min (2 MMscf/d) was measured at 2,025-2,075 metres MD in well Wetlina-6, although the field was not developed.  Two additional prospects have been identified within the new concession from preliminary analysis of historical data. These two structures, both interpreted to contain the Ci