LONDON (Alliance News) - San Leon Energy PLC Thursday said it has finished testing the Racwicz-15 well in Poland, which delivered a flow rate in excess of 3.6 million standard cubic feet of gas per day, and said production from the field should start early next year.
San Leon said that flow rate was the average over the main flow period conducted over "several days," and the well has now been shut-in whilst the company analyses the pressure build-up information in order to use the data to update its reservoir model.
San Leon holds a 35% participating interest in the Racwicz project, which is operated and 65%-owned by Palomar Natural Resources. Palomar had been funding all of the costs on to earn that stake, but has now fulfilled that obligation through Racwicz-15, meaning all future work will be split based on each companies' individual stakes in the project.
Field development continues to progress and Palomar is finalising a full development plan to be submitted to the Polish government for approval. That plan includes bringing three wells into production, including Racwicz-12 and Racwicz-15, which is expected to occur in "early 2017".
"Pipeline, facility and final project engineering are nearly complete, while all required permits, rights-of-way and regulatory approvals are being obtained. Gas off-take agreements are being negotiated with several groups," said San Leon.
San Leon shares are currently suspended due to the ongoing deal related to the company's proposed acquisition of Mart Resources Inc.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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San Leon (SLE)