Last checked at 30 May 2013 07:00
30 May 2013
San Leon Energy Plc
("San Leon" or the "Company")
Czaslaw-1 Update
San Leon Energy has completed a successful stimulation test on the Czaslaw-1 well in the Nowa Sol licence, Poland. The test was designed to obtain critical formation data, including formation pressure, system permeability and skin damage, and involved a limited-volume acid wash followed by a flow period and a shut-in period. The results of the test indicate system permeability in line with that in the Bakken Formation in North America.
During the four-day flow period, small amounts of hydrocarbon gas were produced and flared (~10 cubic meters per hour) along with burnt acid and small amounts of oil. Pressure gauges were deployed downhole during the seven-day build-up test. Upon completion of the test, analysis of the downhole pressure measurements showed satisfactory reservoir pressure of 129 Bar. Pressure transient analysis indicates encouraging system permeability of 0.01-0.1 MD, which is in line with that of the Bakken Formation in North America. The analysis also indicates high skin factor (5-9), suggesting significant flow improvement potential relative to the untargeted limited-size stimulation performed for data gathering.
The Company's staff are currently working with Denver-based stimulation experts to finalise a forward plan for the Czaslaw-1 well, such as running casing in the current 60-degree wellbore in preparation for a larger targeted acid frack. Any such further operations on Czaslaw-1 would be expected to occur this summer, subject to permissions and equipment availability.
The Company will provide a further update once the next steps in the forward plan has been finalised.
Executive Chairman, Oisin Fanning commented:
"Results of these tests have been as good as we could have expected and go a long way to building what could be regarded as a Bakken-type resource play. There is a huge amount of oil in place in the Main Dolomite and we are committed to unlocking both the conventional and unconventional potential of the petroleum system."
Successful further stimulation of this well, and the drilling and stimulation of a number of appraisal wells, would be required to establish this as a developable resource, but any such success would have a material positive impact upon both San Leon and Poland."
For further information contact:
San Leon Energy Plc | Tel: +353 1291 6292 |
Oisin Fanning, Executive Chairman | |
Macquarie Capital (Europe) Limited | Tel: +44 (0) 20 3037 2000 |
John Dwyer | |
Fox Davies Capital | Tel: +44 (0) 20 3463 5000 |
Daniel Fox-Davies | |
Richard Hail | |
FirstEnergy Capital LLP | Tel: +44 (0) 20 7448 0200 |
Hugh R. Sanderson | |
David van Erp | |
Westhouse Securities (Nominated Advisor) | Tel: +44 (0) 20 7601 6100 |
Richard Johnson | |
Antonio Bossi | |
College Hill Associates | Tel: +44 (0) 20 7457 2020 |
David Simonson | |
Alexandra Roper | |
Plunkett Public Relations | Tel: +353 (0) 1 284 4414 / +353 (0) 87 826 0833 |
Sharon Plunkett | |
Jennie Cotter |
www.sanleonenergy.com
Qualified person
Lars Hübert, who has reviewed this update, has over 17 years experience in the oil & gas industry and is a member of the American Association of Petroleum Geologists. He holds a BS from the University of Oslo, a MS from the University of Wyoming, and a MBA from Heriot Watt University. Lars is currently the Exploration Manager for all unconventional oil and gas for San Leon Energy and is based in San Leon's Warsaw office in Poland.