Lelechow-SL1 Finds Oil

RNS Number : 0691L

San Leon Energy PLC

30 August 2012

 



30 August 2012

San Leon Energy Plc

("San Leon" or the "Company")

Lelechow-SL1 finds oil

San Leon is pleased to announce that it has found oil and has completed the drilling of the Lelechow-SL1 well, the first of a two well exploration programme, on the Company's Nowa Sol Concession targeting the Main Dolomite trend in the Southern Permian Basin insouthwest Poland (San Leon 100%). The well was drilled to a depth of 1,167 meters TVD.

Initial evaluation of the results from core and wireline logging results indicate the primary target in the Zechstein Main Dolomite is highly fractured and contains moveable oil.

Oil was recovered to the surface during initial clean out of the well.

Final completion of the well will incorporate an electrical submersible pump to continue to clean out the well and maximize oil flow rates during production.

The Company expects to resume testing of the well in the next few weeks pending final completion of drilling operations. Well completion is being designed for near-term commercial production from the well.

The Company is now preparing to move the rig to begin drilling the Czaslaw-SL1 well, the second well in the Nowa Sol Concession, which will also test the Main Dolomite.

Executive Chairman, Oisin Fanning commented:

"It is very encouraging to be able to report oil in our first well on the Main Dolomite trend in Poland that resulted from our own 3D seismic survey and interpretation on the Nowa Sol Concession. We will only know the oil production potential and recovery rates once the well is completed, cleaned up and tested but are excited because the fractured nature of the Main Dolomite offers significant upside in the play. The Company is now preparing to move the rig to begin drilling Czaslaw-SL1 well, our second well in the Main Dolomite trend."

For further information contact:

San Leon Energy Plc	Tel: [phone]
Oisin Fanning, Executive Chairman
John Buggenhagen, Exploration Director
Macquarie Capital (Europe) Limited	Tel: [phone]
Paul Connolly
John Dwyer
Fox Davies Capital	Tel: [phone]
Daniel Fox-Davies
Richard Hail
FirstEnergy Capital LLP	Tel: [phone]
Hugh R. Sanderson
David Van Erp
Westhouse Securities (Nominated Advisor)	Tel: [phone]
Richard Johnson
Antonio Bossi
College Hill Associates	Tel: [phone]
Nick Elwes
Alexandra Roper

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.

 

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