Last checked at 19 May 2015 07:00
19 May 2015
San Leon Energy plc
("San Leon" or "the Company")
Rawicz-12 Update and Field Reserves
· Rawicz field contains more than 50 Bcf recoverable gas according to CPR, expected to be the largest gas development in Poland for around 20 years
· Buoyant Polish gas price
· San Leon's first bookable reserves
San Leon Energy plc ("the Company" or "San Leon"), the AIM listed company focused on oil and gas exploration in Europe and North Africa, announces an update to the results of the Rawicz-12 well test in Poland.
Following the Company's announcements dated 25 February and 6 March 2015, describing the highly positive preliminary well test results for Rawicz-12, Ryder Scott Company has finalised a Competent Persons Report ("CPR") on the Rawicz Gas field for Palomar Natural Resources ("PNR"), the operator. Ryder Scott has issued an estimate of the gross Proved plus Probable (2P) reserves for the Rawicz field of 50.3 billion cubic feet (Bcf) based upon a five-well development plan (including the Rawicz-12 well). Both San Leon and PNR expect to move reserves to Proved (1P) based upon a signed gas contract, which is currently under negotiation. All estimates produced by Ryder Scott comply with the 2007 Petroleum Resources Management System (PRMS) prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE).
PNR, together with the Company, is currently in the advanced stages of the planning and design of several development scenarios focused on bringing gas online in early 2016. A development plan will be submitted to the Polish regulators, based on the CPR. The current development plan is based upon building a scalable central processing facility to handle the gas production from adjacent prospects on the Rawicz Concession, which PNR estimates to be in excess of 100 Bcf.
The Rawicz project is operated by Palomar Natural Resources with 65% equity, and San Leon has no up-front drilling costs for its 35% equity share of the first two wells.
Oisin Fanning, San Leon Energy Executive Chairman, commented:
"We are quickly moving forward with the development of the Rawicz gas field, and the confirmation of reserves from the CPR is a very positive step. San Leon and PNR are focused on first production and expanding our development using modern drilling and completion technology to unlock the significant remaining reserves in this under-explored basin, where some of the best gas prices in Europe can be found."
John Buggenhagen Palomar Natural Resources CEO commented:
"This is an exciting time for Palomar and San Leon, and for Poland - the Rawicz field development is the beginning of a larger exploration and production business for conventional gas in Poland. We have already mapped several other large, undrilled structures on our 3D seismic database at Rawicz and across our broader acreage position, that bring significant upside potential to the area and justify a larger, fast-paced development plan. Based upon our current prospect portfolio and the current fiscal regime in Poland, we see the potential for a highly profitable, sustainable E&P business in Poland for the long term. Rawicz is the first step in realizing this potential."
For further information contact:
San Leon Energy plc Oisin Fanning, Executive Chairman
| +353 1291 6292 |
finnCap Ltd Corporate FinanceMatt Goode Christopher RaggettCorporate BrokingJoanna Weaving
| +44 (0) 20 7220 0500 |
Brandon Hill Capital Oliver StansfieldJonathan Evans
| +44 (0) 20 3463 5000 |
Macquarie Capital (Europe) LimitedJon FitzpatrickNicholas Harland
| +44 (0) 20 3037 2000 |
Westhouse Securities LtdNominated AdviserRichard JohnsonAntonio Bossi
| +44 (0) 20 7601 6100 |
Vigo CommunicationsFinancial Public RelationsChris McMahon Alexandra Roper
| +44 (0) 20 7016 9572 |
Plunkett Public RelationsSharon Plunkett | +353 (0) 1 280 7873 |
www.sanleonenergy.com
Qualified personJoel Price, who has reviewed this notification, has 20 years' experience in the oil & gas industry and is a member of the Society of Petroleum Engineers. He holds a BA in Natural Sciences from Cambridge University, an MEng from Heriot-Watt University, and an MBA from Durham University. Joel is Chief Operating Officer for San Leon Energy and is based in San Leon's London office.
Glossary of key terms
Proved reserves or 1P
Proved Reserves are those quantities of petroleum, which by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs under defined economic conditions, operating methods, and government regulations. If deterministic methods are used, the term reasonable certainty is intended to express a high degree of confidence that the quantities will be recovered. If probabilistic methods are used, there should be at least a 90% probability that the quantities actually recovered will equal or exceed the estimate.
Probable reserves
Probable Reserves are those additional reserves which analysis of geoscience and engineering data indicate are less likely to be recovered than Proved Reserves but more certain to be recovered than Possible Reserves. It is equally likely that actual remaining quantities recovered will be greater than or less than the sum of the estimated Proved plus Probable reserves (2P). In this context, when probabilistic methods are used, there should be at least a 50% probability that the actual quantities recovered will equal or exceed the 2P estimate.