Siciny-2 Update

RNS Number : 1406M

San Leon Energy PLC

21 August 2013

 



21 August 2013

San Leon Energy Plc

("San Leon" or the "Company")

Siciny-2 Update

San Leon Energy has completed two additional Diagnostic Fracture Injection Test's ("DFIT") in the Carboniferous tight gas sand in Siciny-2.  The DFIT's were pumped in the upper section of the tight gas sand, and were designed to assess formation pressure, fracture gradient and permeability of the sand and therefore the viability of future hydraulic fracturing and test production.

The first DFIT was pumped in May in the deepest part of the tight gas sand.  This test indicated a very tight formation.  In early August, a second DFIT was pumped in the shallowest part of the tight gas sand.  This test was very small in volume, and pressure bled off very quickly, indicating a fractured reservoir.  A third DFIT was then performed, pumped with a larger volume in the same perforations as the second DFIT.  The results of the third DFIT appear to confirm the fractured nature of the reservoir, and indicate effective permeability of 25 microDarcies, frackable rock, and a slight overpressure.  These results are in line with other tight gas sand resources around the world.

San Leon Energy will evaluate the results in cooperation with Halliburton and APEX in Denver, and commence designing a hydraulic fracturing treatment for the well.

Oisin Fanning, Chairman of San Leon, commented:

"We are delighted with the results of this DFIT, indicating an effective formation permeability in excess of 1000 times that of the first DFIT.  The reservoir properties of the Carboniferous tight gas sand appear to be in line with highly attractive tight gas sand plays in the US."

For further information contact:

San Leon Energy Plc	Tel: [phone]
Oisin Fanning, Executive Chairman
Macquarie Capital (Europe) Limited	Tel: [phone]
John Dwyer
Fox Davies Capital	Tel: [phone]
Daniel Fox-Davies
Susan Walker
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]
David Simonson	Or:  [phone]
Alexandra Roper
Plunkett Public Relations	Tel: [phone]
Sharon Plunkett
Jennie Cotter

www.sanleonenergy.com

Qualified person

Lars Hübert, who has reviewed this update, has over 17 years experience in the oil & gas industry. He holds a BS from the University of Oslo, a MS from the University of Wyoming, and a MBA from Heriot Watt University. Lars is currently the Exploration Manager for all unconventional oil  and gas for San Leon Energy and is based in San Leon's Warsaw office in Poland.

 

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