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18 Mar 2011 08:35
SAN LEON ENERGY
("San Leon" or the "Company")
Commencement of Offshore Albania Seismic Survey
San Leon and its partner, Beach Energy Limited ("Beach Energy"), are pleased to announce they have commenced an 840 square kilometre 3D seismic survey on their Durresi Block, offshore Albania.
Petroleum Geo-Physical AS ("PGS") has been contracted to carry out the survey using the M/V Ramform Vanguard seismic vessel. The 3D seismic programme will evaluate a number of highly prospective structures in the Block, including the A4-1X discovery, in preparation for a 2012 appraisal drilling programme.
San Leon, through a subsidiary, holds a 75% interest in the block and is the operator. Beach Energy holds the remaining 25% interest. Beach Energy has agreed to pay 50% of the seismic programme costs, rather than their 25% working interest requirement, in exchange for an option which, if exercised, will allow them to hold a 50% working interest in the licence going forward.
As detailed on 18 September 2009, San Leon has a seismic services agreement with PGS Ventures AS, who is providing a $50m facility for seismic services. San Leon's Albania seismic acquisition costs will be paid for through this agreement.
The Durresi Block contains the undeveloped A4-1X gas condensate field, which was discovered in 1993, 30 km off the southern coast of Albania. The discovery indicated circa 38 mmbbls of circa 51 API condensate and 150 BCF of gas. The Company is also exploring significant potential multiple plays adjacent to A4-1X targeting both oil and gas. This underexplored, highly prospective, area is situated on the proven Apulian Margin, which extends from Italy into Albania. Southern Albania contains a highly prolific petroleum system including one of the largest onshore oil accumulations in Europe, the Patos-Marinza field, which is estimated to contain up to 5.7 billion barrels of OOIP.
Oisín Fanning,Executive Chairman of San Leon Energy, commented:
"We are delighted that we have been able to mobilise a vessel so quickly after being awarded approval for the Durresi Block at the beginning of February. Albania is generating a lot of international interest at this time and we are excited by the potential we see in our acreage. Our 3D seismic programme is the largest ever carried out in Albania and we are confident that we are on track to drill an A4-1X field appraisal well in 2012."
18 March 2011
ENQUIRIES
San Leon Energy plc | Oisin Fanning, Executive Chairman | +353 1291 6292 |
John Buggenhagen, Director of Exploration | ||
Macquarie Capital (Europe) Limited | +44 (0) 3037 2000 | |
John Dwyer | ||
Paul Connolly | ||
Ben Colegrave | ||
Fox-Davies Capital Limited | +44 (0) 203 463 5010 | |
Phil Davies | ||
David Porter | ||
Arbuthnot Securities Limited | Nominated Adviser | +44 (0) 20 7012 2000 |
Nick Tulloch | ||
Ben Wells | ||
College Hill | Investment Relations Adviser | +44 (0) 20 7457 2020 |
Nick Elwes |
Qualified person
John Buggenhagen has over 15 years experience in the oil & gas industry. He has a Ph.D. and M.Sc. in Geophysics from the University of Wyoming and a B.Sc. in Geophysics from the University of Arizona. He is currently the Director of Exploration for the San Leon Energy
Group and based in San Leon's Warsaw office in Poland.
Notes to Editors - Albania:
Information from the World Bank:
Despite the current slowdown induced by the global financial crisis, Albania is nevertheless poised to resume its high growth rates gradually, being one of the few countries avoiding recession in 2009.
Albania's poverty rate was reduced from 25 percent to 12 percent between 2002 and 2008, one of the highest rates of poverty reduction in the ECA region
http://web.worldbank.org.al
Information from the World Bank and the International Monetary Fund:
Projected Real GDP Growth for Albania is 5.5 % in 2010, and 6.5% in 2011.
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