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3 Feb 2011 07:28
This announcement replaces the San Leon Energy release that was released at 07.00 am, 3 February 2011.
Paragraph 1: The last sentence previously had an effective date for the approval of xx January 2011 when the announcement should read as outlined below; "The approval became effective when the decision was published in the Albanian government official gazette."
San Leon Energy
("San Leon" or "the Company")
Approval recieved for Durresi Licence, offshore Albania
Highlights:
·; Albanian Council of Ministers' approval has been recieved for the Durresi licence
·; Durresi Block, offshore Albania, is situated along the highly prospective Apulian Margin
·; San Leon will now acquire over 300km2 of 3D seismic over the Block during Q1 2011
·; 3D seismic will evaluate A4-1X discovery and plan for 2012 appraisal drilling programme
San Leon is pleased to announce that the Albanian Government Council of Ministers has approved the Durresi Block Licence Petroleum Complimentary Agreement for San Leon and its partner, Beach Energy Limited ("Beach Energy"). San Leon, through a subsidiary, holds a 75% interest in the block and is the operator. Beach Energy holds the remaining 25% interest. The approval became effective when the decision was published in the Albanian government's official gazette.
The Durresi Block, offshore Albania, is situated along the highly prospective Apulian Margin. With the approval of Durresi now gained, San Leon will focus on acquiring over 300 km2 of 3D seismic data during the remainder of Q1 2011.
The 3D seismic programme will evaluate the A4-1X discovery as well as prepare for a 2012 appraisal drilling programme in the undeveloped gas condensate field. Beach Energy has also agreed to pay 50% of the costs, rather than their 25% working interest requirement, for the upcoming 3D seismic programme in exchange for an option which, if exercised, will allow them to hold a 50% working interest in the licence going forward.
The A4-1X field was discovered in 1983, 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:
"This project is the catalyst for our Albania exploration programme. We are excited to have received Council of Ministers' approval and can now focus on our upcoming 3D seismic programme. We see great potential in Albania, and are confident of a successful outcome in the upcoming evaluation and appraisal of the A4-1X discovery. Albania is quickly gaining momentum in our portfolio as our subsurface team continues to develop an inventory of exploration opportunities."
3 February 2011
ENQUIRIES
San Leon Energy plc | Oisín Fanning, Executive Chairman | +353 1291 6292 |
John Buggenhagen, Director of Exploration | ||
Macquarie Capital (Europe) Limited | +44 (0)203 037 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) 207 012 2000 |
Nick Tulloch | ||
Ben Wells | ||
College Hill | Investment Relations Adviser | +44 (0) 207 457 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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