Last checked at 6 Mar 2015 07:00
6 March 2015
San Leon Energy plc
Rawicz-12 Well Test Completion
San Leon Energy plc ("the Company" or "San Leon"), the AIM listed company focused on oil and gas exploration in Europe and North Africa, notes yesterday's announcement by Palomar Natural Resources ("Palomar" or "PNR") regarding the completion of testing of the Rawicz-12 well in Poland.
Further to the Company's announcement on 25 February 2015 outlining the interim well test results of the Rawicz-12 well, San Leon sets out below the further information released by PNR.
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.
"Palomar Natural Resources notes a significant exploration success in Poland with the outlook to start natural gas production near term.
Palomar Natural Resources (PNR), a privately owned international oil & gas exploration and production company has successfully completed its testing program of the Rawicz-12 appraisal well located near in Western Poland. Results of the test data gathered to date include a maximum test rate of 5.3 mmscfd (million cubic feet per day) with an average 24 hour steady flow rate of 4.5 mmscfd. The flow rate and pressure data collected prove a significant gas accumulation at the Rawicz field. Estimated Ultimate Recoverable gas is yet to be determined. Successful appraisal of the Rawicz gas field is one of few recent success stories in Poland's struggling E&P sector. This success opens a broad range of opportunities for future investment in oil and gas in Poland.
Palomar purchased its 65% interest in Rawicz less than 9 months ago in June 2014 from San Leon Energy. In this short time PNR assumed operatorship of 7 concessions, built a competent operations team, obtained all necessary permits and approvals, drilled the Rawicz-12 well and successfully flow-tested gas. In the short term, PNR is focused on detailed analysis of results to determine the best way forward to develop the Rawicz field and continue to appraise adjacent prospects in the area.
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.
John Buggenhagen, Ph.D., CEO of Palomar Natural Resources commented:
"I am excited that Palomar's first Polish well is a success. This early success is proof that a strategy based on applying the latest seismic, drilling and completion technologies to unlock the potential of untapped conventional deposits in Poland, previously considered uneconomical can be successful. I am confident that PNR's recent success at Rawicz will open a new era of exploration and development for conventional oil and gas in Poland."
Palomar is one of the first foreign companies in Poland working to initiate natural gas production in the near term. The exploration success in Rawicz demonstrates significant potential for more discoveries and hydrocarbon production from conventional deposits on trend. PNR's success at Rawicz also helps Poland's energy sovereignty by contributing to Poland's share of domestic gas in the national energy supply and demand balance. Currently, the price of gas imported by Poland is one of the highest in Europe, exceeding 10 USD per thousand cubic feet
Palomar Natural Resources is committed to Poland and will continue its intensive exploration and development efforts. Further investment plans include new wells of other gas accumulations, developing the Rawicz gas field and a new exploration and appraisal program to prove commerciality of Siekierki field located near the city of Poznan.
Palomar's team is composed of E&P sector specialists with significant worldwide experience.
Palomar Natural Resources currently owns 65% of and operates seven exploration and appraisal concessions in Poland totaling more than 5,000 km2 including the Nowa Sol, Wschowa, Gora, Rawicz, Poznan East 206, Poznan East 207, and Poznan North 208 concessions."
Ends
Joel Price, San Leon Chief Operating Officer, commented:
"Further to the Company's announcement on 25 February 2015 outlining the interim well test results of the Rawicz-12 well, we are very pleased to see the well continue to clean up and reduce its skin, which bodes well for future production rates and recoveries."
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.
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