San Leon oil programme on track in Poland

San Leon said Friday its Nowa Sol exploration programme in Poland has showed high potential for oil production.

In an operations update the company announced positive results from tests undertaken at the Permain Main Dolmite, the primary oil-producing reservoir in Poland.

Initial core results have indicated it is an ideal fracturing candidate for production based on the highly brittle nature of the Dolomite which is encased in perfect frac barriers in the Zechstein salts and anhydrites.

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The company is exploring drilling techniques in the US including the Mississippian Limestone and the Bakken Formation to get the most out of the reservoir.

San Leon has so far reached a total depth of 1,558 meters measured depth just below the target Permian Main Dolomite reservoir at the Czasaw SL-1 well.

The well has been completed for future production testing and has been shut-in for future operations.

Live oil shows were present on 90% of the extracted cores and detailed petrophysical analysis indicates moveable oil in the Main Dolomite reservoir.

Results suggest the well is a good candidate for artificial stimulation to enhance the natural fractures in the reservoir.

The Lelechow SL-1 well has been shut-in after an extended well test was carried out to examine if oil would flow with the current completion design at commercial rates. It will be shut-in, due to high costs of short term water disposal, until the company evaluates more cost effective long term options.

The company will consider the options following results from tests.

Executive Chairman, Oisin Fanning said: "We continue to be excited by the potential of the Main Dolomite oil play in our expansive Permian Basin acreage in Poland. Our first two wells have helped us to better understand the potential of the play and the challenges. We look forward to testing the Czasaw well as soon as our engineering and permitting efforts are completed. We have found oil in the Main Dolomite and are working on ways to economically produce from these wells as well as extend our results to the significant upside that exists across our acreage."

RD