San Leon discovers frackable rock in Polish well

Poland-focused San Leon Energy has uncovered rock formations at a Polish exploration well that are akin to the bounteous Bakken Formation in North America.

Poland-focused San Leon Energy has uncovered rock formations at a Polish exploration well that are akin to the bounteous Bakken Formation in North America.

A successful stimulation test on the Czaslaw-1 well in the Nowa Sol licence in Poland indicated that the rock formation would yield hydrocarbons from 'fracking' drill techniques.

Aim-listed San Leon's Executive Chairman Oisin Fanning said: "Results of these tests have been as good as we could have expected and go a long way to building what could be regarded as a Bakken-type resource play.

"There is a huge amount of oil in place in the Main Dolomite and we are committed to unlocking both the conventional and unconventional potential of the petroleum system."

During a four-day stimulation test, small amounts of hydrocarbon gas were produced and flared along with burnt acid and small amounts of oil.

The company said that analysis of the downhole pressure measurements showed "satisfactory" reservoir pressure of 129 bar, with "pressure transient analysis indicating encouraging system permeability of 0.01-0.1 measured depth, which is in line with that of the Bakken Formation in North America".

Fanning said: "Successful further stimulation of this well, and the drilling and stimulation of a number of appraisal wells, would be required to establish this as a developable resource, but any such success would have a material positive impact upon both San Leon and Poland."

San Leon's Polish team are now working on a plan for the well with US stimulation experts, any further operations expected this summer, subject to permissions and equipment availability.

Shares in San Leon Energy were up 2.1% to 7.3p at 11:45 on Thursday.

OH

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
James Ferguson: How bad data is driving fear of a second wave of Covid-19
UK Economy

James Ferguson: How bad data is driving fear of a second wave of Covid-19

Merryn and John talk to MoneyWeek regular James Ferguson about the rise in infections in coronavirus and what the data is really telling us.
17 Sep 2020