Morocco well results and forward plan

RNS Number : 6340A

San Leon Energy PLC

30 September 2015

 

30 September 2015

San Leon Energy Plc

("San Leon" or "the Company")

Morocco well results and forward plan

San Leon Energy, the AIM listed company focused on oil and gas exploration in Europe and North Africa, announces the results of the Laayoune-4 well on the Tarfaya conventional licence, onshore Morocco in the Sahara region.

The well (formerly known as El Aaiun-4) was drilled with Entrepose Drilling's Cabot 750 rig, targeting Tertiary channel sandstones and with an expected total depth (TD) of around 2000 metres below rotary table (mBRT).

Gas shows were encountered within the reservoir section, whose gross thickness of 23 metres of sandstone and conglomerate was around 10 metres more than prognosed.  Reservoir interval porosity was up to 18, with some carbonate laminae.  The reservoir was encountered some 100 metres more shallow to prognosis, and confirmed the geological concept of a thick sand channel system.

Elevated mud gas readings, including measurements up to C3 in the shallowest sands, coincided with the logged reservoir section.  A gas and liquid kick was taken while drilling below the reservoir interval, leading to total depth being called early on the well at 1814 mBRT. The mud weight used was relatively heavy at 14 ppg (pounds per gallon), and no measurable mud losses were observed while drilling the target interval, providing good evidence for the overpressured nature of the formation.

The well was drilled on time, within budget and with no incidents.

Laayoune-4 has now been suspended, pending further studies and to allow future re-entry.  ONHYM and San Leon intend jointly to apply for a new eight year exploration licence.  San Leon intends, during the first period of the new licence, to acquire a 3D seismic survey across the multiple channels of the Tertiary play, one channel of which was drilled by the Laayoune-4 well.  Based upon the results of the seismic, San Leon would consider the option of re-entering the Laayoune-4 well (including testing), drilling an additional well, or both.

Oisin Fanning, San Leon Executive Chairman, commented:

"We are very pleased with the results of the Laayoune-4 well.  Confirming the presence of gas shows and good reservoir quality is encouraging for the potential of the block and leads naturally to applying for a new eight year licence in the area, which would allow for seismic acquisition to be performed over the full channel complex.  It would also enable additional data to be acquired over the deeper Jurassic and Triassic prospects. We are grateful to the operational team and to the local workers who together ensured that the well was drilled efficiently and safely."

Qualified person

Joel Price, who has reviewed this update, has more than 20 years' experience in the oil & gas industry and is a member of the Society of Petroleum Engineers. He holds a BA in Natural Sciences (Geology) from Cambridge University, an MEng in Petroleum Engineering from Heriot-Watt University, and an MBA from Durham University. Joel is Chief Operating Officer for San Leon Energy and is based in San Leon's London office.

Enquiries:

San Leon Energy plc  Oisin Fanning, Executive Chairman	[phone]
Brandon Hill Capital Oliver Stansfield Jonathan Evans	[phone]
finnCap Ltd  Corporate Finance Matt Goode Christopher Raggett Corporate Broking Joanna Weaving	[phone]
Macquarie Capital (Europe) Limited Jon Fitzpatrick Nicholas Harland	[phone]
Westhouse Securities Ltd Nominated Adviser Richard Johnson Antonio Bossi	[phone]
Vigo Communications Financial Public Relations Chris McMahon Alexandra Roper	[phone]
Plunkett Public Relations Sharon Plunkett	[phone]

www.sanleonenergy.com 

The Directors of San Leon accept responsibility for the information contained in this announcement. To the best of their knowledge and belief (having taken all reasonable care to ensure such is the case), the information contained in this announcement is in accordance with the facts and does not omit anything likely to affect the import of such information.

A person interested in 1% or more of any class of relevant securities of San Leon may have disclosure obligations under Rule 8.3 of the Takeover Rules, effective from 24 August 2015. 

 

END

 

 

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