Spudding of Kety Well

RNS Number : 6700S

San Leon Energy PLC

26 September 2014

 



26 September 2014

San Leon Energy plc

("San Leon")

San Leon spuds first well in three-well planned programme

-      Carpathian Wells targeting 8 BCF -      Permian Well targeting 400,000 bbls of oil

San Leon Energy, the AIM listed company focused on oil and gas exploration in Europe and North Africa, announces that it is spudding the Kety exploration well today, which is the first well of a three-well planned programme in the Karpaty area and Permian Basin in Poland.

As announced in August, the Company intends to drill two exploration wells in the Karpaty area and one exploration well in the Permian Basin in Poland during a single campaign using a rig from Exalo Drilling. All three wells are relatively shallow and are in a proven hydrocarbon trend area.

Drilling of the first well is expected to be completed by mid-October, with completion and testing planned by the end of October if the well is successful.

The Kęty well, which is on the Bestwina concession in Karpaty, is targeting gas in the Miocene sandstone with an estimated 4 Bcf mid-case recoverable from the prospect. San Leon Energy holds 60% and is operator of the concession, with PGNiG holding the remaining 40%.

Following completion of the Kety well, the rig will move to drill the Gierałtowice prospect, which is on the Bielsko-Biała concession, also in Karpaty. This second well is targeting 4 Bcf of mid-case recoverable gas in two target reservoirs - the Upper Carboniferous sandstone being the primary target with the Lower Carboniferous limestone as a secondary target. San Leon Energy holds 60% and is operator of the concession, with PGNiG holding the remaining 40%.

Following completion of the two Karpaty wells, the Company plans to drill the Niwiska prospect with the same rig on Block 243 in the Permian Basin. San Leon Energy, as operator, is drilling the well to fulfill the final stage of its obligation to earn 50% of the concession. Celtique Energy will hold the remaining 50%.

The Niwiska prospect is targeting 400,000 bbls of mid-case recoverable oil plus some potential gas in the naturally-fractured Main Dolomite. The drilling and timing of this well is subject to further permitting and approvals which the Company hopes to secure before the completion of work at Gierałtowice.

There is significant existing gas pipeline infrastructure in the Karpaty area.  Tie-ins from the Kęty and Gierałtowice wells are expected to be in the range of 7-18 kilometres.  Since the Niwiska prospect is oil, it is likely to be trucked.

Oisin Fanning, Chairman of San Leon, commented:

"The drilling programme is the natural next step in our Polish story and we see it as an avenue to early production and hope to complete all three wells in the coming months. PGNiG is an experienced and well respected company in Poland and we look forward to working with them on this project."

Qualified person

Joel Price, who has reviewed this update, has 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 from Cambridge University, an MEng 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.

For further information contact:

San Leon Energy plc  Oisin Fanning, Executive Chairman	[phone]
finnCap Ltd  Corporate Finance Matt Goode Christopher Raggett Corporate Broking Elizabeth Johnson Joanna Weaving	[phone]
Fox-Davies Capital Limited Daniel Fox-Davies Oliver Stansfield Jonathan Evans	[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 Patrick d'Ancona Chris McMahon	[phone]
Plunkett Public Relations Sharon Plunkett	[phone]

www.sanleonenergy.com 

 

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