SLE.L Share News (SLE)

Oil and gas explorer San Leon Energy has successfully completed its third shale gas exploration well in Poland's Baltic Basin. The well, which is operated by Talisman Energy on a farm-in agreement, delivered continuous gas shows, which are consistent with a potentially wet gas system. The strongest gas shows were encountered in the Lower Silurian and Ordovician interval, which is estimated to be over 100 meters thick combined. Several intervals had significant gas shows which the company believes are related to natural fracturing and possible over-pressure.The firm will now assess the results over the next six months ahead of further operations in 2013, which could include pressure testing of the formations as well as possible fracking across several intervals. Oisin Fanning, Chairman of San Leon said: "We are excited by the successful drilling and significant data gathering at the Szymkowo-1 well. The results continue to show the regional variability of the basin and are proof that the deeper parts of the basin are gas charged. "This is yet another milestone for San Leon and our successful partnership with Talisman Energy as we plan to move forward towards the next stage of our cooperation including horizontal drilling and potential testing in 2013."Talisman is expected to drill and test its first horizontal well in the first half of 2013. NR