San Leon Energy's shares surge on MoU with Halliburton Company

San Leon Energy said on Monday it has signed a memorandum of understanding with Halliburton Company Germany GmbH to develop gas projects in Poland.

The possible joint venture will explore the gas potential of San Leon's Wschowa, Gora, and Rawicz concessions.

Under an agreement, San Leon would continue as operator and manager of the concessions, while Halliburton would perform and fund a diagnostic fracture injection test (DFIT) for the Siciny-2 well in the second quarter of 2013.

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Following completion of the test, Halliburton would have the option to perform and fund a minimum two-stage vertical hydraulic fracture in the Siciny-2 well.

Halliburton would also have the option to earn up to a 25% working interest from the concessions through funding two vertical exploration wells, including full technical evaluation with core, DFIT, and vertical hydraulic fracturing if technically warranted.

"We are very excited about our evolving relationship with Halliburton which will help us prove the huge resource potential of the Carboniferous unconventional gas play across our vast acreage position in the SW Carboniferous Basin in Poland," said Executive Chairman Oisin Fanning.

"This relationship is further proof of our strategy of creating value through strong technical effort followed by the drill bit. Halliburton brings the expertise and capabilities to prove the potential of the Carboniferous and quickly take the project from exploration to development."

Shares rose 5.34% to 7.50p at 11:36 Monday.

RD