Barryroe Update

RNS Number : 4440Q

San Leon Energy PLC

19 October 2011

 



19th October 2011

San Leon Energy Plc

("San Leon" or the "Company")

Standard Exploration Licence 1/11 granted over an increased Barryroe area

San Leon Energy Plc is pleased to announce that it has been awarded Standard Exploration Licence 1/11 ("Licence") over the Barryroe oil discovery by the Irish Minister for Communications, Energy and Natural Resources, Pat Rabbitte TD. The Licence has been awarded for a period of up to six years and is split into two three year phases.

This Licence is a successor authorisation to Licensing Option 08/1, where San Leon and its partners acquired 220 sq km of 3D data in June 2011. The areal extent of the Licence has been increased by approximately 9% (c. 25 sq km) to cover additional acreage with identified resource potential.

Providence Resources Plc ("Providence") holds a 50% interest in the Licence and operates on behalf of San Leon (30% interest) and Lansdowne Oil & Gas Plc ("Lansdowne") (20% interest).

An upcoming well, the 48/24-J well, is planned for mid-November 2011. This well will offset the previous Marathon Oil operated 48/24-3 (1990) well, which tested c. 45^o API light sweet oil at c. 1,600 BOPD from Base Cretaceous sands.

The 48/24-J well is planned to demonstrate higher flow rates through the use of new technologies.

Oisin Fanning, Executive Chairman of San Leon commented:

 "The higher oil price, new technology and location of Barryroe could certainly see this field being developed in the not too distant future. We would like to thank the Minister for granting this Licence to the partners. We believe Barryroe has great potential and we look forward to seeing the results of the new 3D survey over the field and the well result in due course"

For further information contact:

San Leon Energy Plc	Tel: + 353 1291 6292
Oisin Fanning, Executive Chairman
Macquarie Capital (Europe) Limited	Tel: [phone]
Paul Connolly Ben Colegrave John Dwyer Arbuthnot Securities Antonio Bossi Richard Johnson	Tel: [phone]
College Hill Associates	Tel: [phone]
Nick Elwes

www.sanleonenergy.com

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:

Barryroe

The Barryroe licence lies directly below the producing Seven Heads Gas Field, in which San Leon holds a 12.5% interest. It has been successfully tested at flow rates of between 1,300 and 1,600 BOPD, from three exploration and appraisal wells. The reservoir sands are of Cretaceous Middle and Lower Wealden age located between c. 4,500‟ TVDSS and 7,550‟ TVDSS. The oil is light (30 to 42 degrees API) and contains relatively high wax content ranging from 12 to 22 per cent, which may require treatment at surface. Providence holds a 50% interest in the licence and operates on behalf of its partners San Leon (30%) and Lansdowne (20%). A third party audit carried out by RPS Energy for Lansdowne indicated P50 and P10 STOIIP estimates for Barryroe of 373 MMBO and 893 MMBO, respectively. The corresponding 2C and 3C Barryroe technically recoverable contingent resources are 59 MMBO and 144 MMBO, respectively.

 

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