LONDON (Alliance News) - San Leon Energy PLC shares rose by two-thirds early Wednesday after it said it has hit gas and sustained a good flow rate from the Racwicz-12 well in Poland and said it plans to drill an additional three to five wells on the Rawicz field.
San Leon shares were up 67.2% to 1.97 pence per share on Wednesday morning, making it the best-performing stock on the AIM All-Share index.
"This is the well we have been waiting for - a significant gas discovery in one of the highest-priced gas markets in Europe," said Executive Chairman Oisin Fanning.
The Rawicz-12 appraisal well, located in south-western Poland, commenced flow testing on February 5, and has to date flowed at an increasing rate of up to 4.1 million standard cubic feet per day. San Leon said well productivity, gas production rate and surface flowing pressure continually increased during the flow period.
"This well is transformational for the company, a step towards energy independence for Poland, and the first of what we anticipate will be a series of such wells for San Leon in the Rawicz field and elsewhere in Poland," said Fanning.
The company said that there is a material flow rate upside of the well, meaning it could achieve a higher rate by cleaning up the well, performing stimulation on the well - such as fracturing it, and reducing, or bypassing the reservoir skin, which is an engineering measure of how much the rock near the wellbore is affected by the clean-up, it said.
The company anticipates that an additional three to five wells will be drilled to develop the field, with the second well on the Rawicz field already being planned at no up-front cost to San Leon, it said.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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San Leon (SLE)