Press Release: San Leon Energy Plc
DUBLIN, IRELAND–(Marketwire -02/14/12)- San Leon Energy Plc (“San Leon” or the “Company”) (AIM: SLE.L –News) –
San Leon Energy, the fast growing oil and gas company with an extensive portfolio of assets across Europe and North Africa, is pleased to announce that it has completed the drilling, initial evaluation, and has cased its Siciny-2 well in the SW Carboniferous Basin of Poland, which comprises of 880,000 acres held 100% by San Leon. The well is located in the company’s 100% operated Gora Concession 70km to the southeast of the city of Zielona Gora. The initial goal of collecting core and downhole geophysical data focused on understanding the unconventional gas potential of the Carboniferous section has been achieved. The Carboniferous is known to be the source rock for the significant gas production in the overlying Permian Rotliegendes formation in Poland.
The stratigraphic test well reached target depth of 3,520 meters after penetrating more than 1,000 meters of Carboniferous section. More than 265 meters of continuous core were collected across three prospective intervals identified in the Siciny-1 well. A previously unseen fourth potential Carboniferous shale section and a fractured tight gas sandstone was also encountered below 3,200 meters in the well. Tight rock analysis will be performed on the core to evaluate the potential for commercial shale gas and tight gas sand production. Valuable drilling data was also obtained in drilling the complex structure of the Carboniferous section, allowing the Company to reduce the time and cost of drilling future wells.
During drilling, continuous gas shows (C1-C3) were encountered across the four prospective shale intervals as well as through the tight sandstone interval. Evaluation and interpretation of the core and logs is expected to take 3-4 months in preparation for future production testing operations. The well was cased for further operations, which could include, pressure testing of the prospective zones (DFIT test) and also possible vertical fracture stimulation and production tests across several intervals.
The Company is focusing on analyzing the final technical results of the well in preparation for testing.
Oisin Fanning, Chairman of San Leon commented:
“We are encouraged by the initial results of the Siciny-2 well showing four potential zones for unconventional gas production, including a newly identified interval. In total we encountered more than 500 meters of potential reservoir for further analysis and possible testing. The complex nature of the Carboniferous source rock, including natural fracturing, shows real promise for gas production. Based upon these initial results we have completed the well for future testing operations.
The successful drilling and completion of the Siciny-2 well is another milestone in proving our operating capabilities and the potential of our diverse exploration portfolio.”
Qualified person
John Buggenhagen, who has reviewed this update, has over 15 years experience in the oil & gas industry. He has a Ph.D. and M.Sc. in Geophysics from the University of Wyoming and a B.Sc. in Geophysics from the University of Arizona. He is currently the Director of Exploration for the San Leon Energy Group and based in San Leon’s Warsaw office in Poland.
Notes to editors:
San Leon is an independent fast growing oil and gas exploration company and is Europe’s leading shale gas company by acreage. The Company has an extensive portfolio of assets in Europe and North Africa that will enable it to provide energy solutions for the future.
San Leon’s assets are located in Poland, Morocco, Albania, Ireland, Spain and Italy. The Company’s portfolio across these geographies is made up of both shale (Poland Baltic Basin, Morocco and Spain) and conventional exploration assets.
San Leon’s key objective is to grow the Company significantly and to become a leading European oil and gas player delivering value to all its stakeholders. To achieve this San Leon, since it was founded in 1995, has built a balanced portfolio as well as an exceptional technical team.
The Company is listed on London’s Alternative Investment Market (ticker symbol: SLE). As at 30 June 2011 the Company had EUR42.2 million of cash and cash equivalents.
Contact:
San Leon Energy Plc
Oisin Fanning
Executive Chairman
+ 353 1291 6292
San Leon Energy Plc
Dr John Buggenhagen
Exploration Director
+ 353 1291 6292
www.sanleonenergy.com
Macquarie Capital (Europe) Limited
Paul Connolly
+44 (0) 20 3037 2000
Macquarie Capital (Europe) Limited
John Dwyer
+44 (0) 20 3037 2000
Westhouse Securities
Antonio Bossi
+44 (0) 20 7601 6100
Westhouse Securities
Richard Johnson
+44 (0) 20 7601 6100
Fox Davies Capital
Daniel Fox-Davies
+44 (0) 203 463 5060
Fox Davies Capital
Oliver Stansfield
+44 (0) 203 463 5061
College Hill Associates
Nick Elwes
+44 (0) 20 7457 2020
