LONDON (Alliance News) - San Leon PLC Monday amended terms of its Letter of Intent with Horizon General Ltd, with Horizon now acquiring a 22.5% working interest in San Leon's Cybinka and Torzym Concessions in Poland's Permian Basin.
The oil and gas production company, with operations in Europe and North America, said that under the revised agreement, Horizon will now pay for San Leon's share of costs in the Sosna-1 exploration well fracture programme up to a gross cost of EUR1.5 million.
The company said that Horizon will now fully fund 100% of San Leon's working interest share of the costs of the drilling, completing, and testing of a Torzym well up to a gross cost of EUR6 million.
San Leon said Horizon will also fully fund San Leon's working interest share of the costs of the drilling concessions targeting the Permian Main Dolomite or production facilities, or a mixture of the two, and up to gross costs of EUR6 million.
The company said it plans to frack the Sosna well and drill its initial Torzym well by August 31.
Upon completion of the work programme and execution of a final farm-in agreement San Leon will own 22.5% of the site as operator, while Horizon will hold 22.5%, SNGN Romgaz SA will hold 30% and Sceptre Oil & Gas Ltd will hold 25%.
San Leon shares were up 0.4% to 3.92 pence Monday.
By Tom McIvor; email@example.com; @TomMcIvor1
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