LONDON (Alliance News) - San Leon Energy PLC Friday said the flow rate on the Polish Rawicz well is higher than previously announced following on from news provided by the operator of the license, Palomar Natural Resources.
On February 25, the company said the Racwiz-12 well had flowed at an increasing rate of up to 4.1 million standard cubic feet per day, adding that well productivity, gas production rate and surface flowing pressure continually increased during the flow period.
On Friday, San Leon said Palomar has reported a maximum test rate of 5.3 million standard cubic feet per day, with the average 24 hour steady flow rate of 4.5 million standard cubic feet per day.
The Rawicz project is operated by Palomar with 65% equity, and San Leon has no up-front drilling costs for its 35% equity share of the first two wells, it said.
It said the estimated recoverable gas is yet to be determined, but said the successful appraisal of Rawicz-12 is one of "few recent success stories in Poland's struggling exploration and production sector."
Full field development and first gas sales are expected by early 2016. In the mean time the company plans to evaluate other exploration opportunities in the area including adjacent prospects that could significantly increase the ultimate recoverable reserve potential of the Rawicz area.
San Leon shares were down 4.5% to 1.48 pence per share on Friday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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San Leon (SLE)