LONDON (Alliance News) - San Leon Energy PLC Friday said it has spudded the first of three wells in its planned programme in the Karpaty area and Permian Basin in Poland.
San Leon is commencing spudding of the Kety exploration well Friday and it is expected to be completed by the middle of October. It is targeting 4 billion cubic feet of recoverable gas.
All three wells are relatively shallow and are in a proven hydrocarbon trend area, and will drill during a single campaign using a rig from Exalo Drilling, said the company in a statement.
Following completion of the Kety well, the rig will move to drill the Gieraltowice prospect, also in the Karpaty area, targeting 4 billion cubic feet of recoverable gas in two target reservoirs.
San Leon is the operator of both wells in the Karpaty area, with 60% interest, with Polish Oil and Gas Co (PGNiG) holding the remaining 40%.
After the two Karpaty wells are finished, the company plans to drill the Niwiska prospect with the same rig in the Permian Basin. It is targeting 400,000 barrels of recoverable oil plus some potential gas.
San Leon is the operator and is drilling the well to fulfill the final stage of its obligation to earn 50% of the concession. Celtique Energie Holdings Ltd will hold the remaining 50%.
"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," said Chairman Oisin Fanning.
San Leon saw its shares drop 0.7% to 2.19 pence per share Friday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
San Leon (SLE)