Gas Production Update

RNS Number : 6538X

San Leon Energy PLC

19 August 2009

 



San Leon Energy Plc 

('San Leon' or the 'Company')

Gas Production Update

• Commercial delivery of production gas from Nichols #1 Well.

• Production at 1.3mmcf per day

• 3 more wells to be drilled on field 

• Targeted total reserves of 5bcf

San Leon Energy is pleased to advise that it commenced commercial delivery of the gas production from its first well in Palo Pinto County, Texas. As a follow up of the discovery in the Nichols # 1 well, notified on the 6th of July 2009, the company can now confirm that the gas pipeline has been completed and a commercial agreement is in place to sell the gas from the 17th of August. A 2.3 kilometre pipeline has been installed which will also accommodate the output from three other well sites to be drilled in the vicinity this autumn.

Oisín fanning, Chairman of San Leon commented

'From the outset, our objective was to take advantage of low risk exploration in the USA to generate positive cash flow. I look forward to the expansion of this project and drilling three further wells which should further prove up reserves and the significant monetary value of this project. 

We are also delighted to illustrate to the market and wider industry our ability to operate to plan. We have shown that we can run through the cycle of exploration, through to production and monetisation of one of our projects. This gives us confidence that we can repeat the process on the higher impact projects in our portfolio'

August 19th 2009

For further information contact:

San Leon Energy Plc                                    Tel: + 353 1291 6292

Oisin Fanning, Chairman

Philip Thompson, Chief Executive Officer

Arbuthnot Securities                                   Tel: [phone]

Nick Tulloch
Andrew Fairclough

Fox Davis Capital                                           Tel: [phone]

Jason Bahnsen

Oliver Stanfield

College Hill Associates                                   Tel: [phone]

Paddy Blewer

Nick Elwes

Qualified person

Philip Thompson has over twenty five years experience in the oil & gas industry. He has an M.Sc. in Geophysics from Southern Methodist University and a B.Sc. in Geophysics from Texas A&M University.

 

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