Shares in oil and gas producer San Leon Energy leapt by almost a third on Friday after the company revealed natural gas and light oil were recovered from the Czasaw-1 well in its Nowa Sol Concession in Poland.
The firm said recent measurements of the well have shown that the well is building pressure and it estimates that by early May it will be able to make a decision on long-term test and oil production, based on the results of an acid stimulation and testing.
Executive Chairman, Oisin Fanning said: "The recent recovery of hydrocarbons and build-up of pressure in the Czasaw-1 well is very exciting. We have been studying the Main Dolomite extensively over the past months with experts both in Europe and North America.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"We are now ready to stimulate and test the well and with success immediately move to production. 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."
The group said analysis suggests the well is a good candidate for artificial stimulation to enhance the natural fractures in the reservoir and there were no indications of water encountered during drilling.
The well is the first well on the Czasaw structure, with room for additional vertical and/or horizontal wells.
The share price rose 28.14% to 6.42p by 13:15.
NR
-
‘I installed a heat pump in my home – here are five things I’ve learnt’From the size and noise of a heat pump to how much it costs to run one, Ruth Emery reveals what she’s learnt after installing one in her home six months ago
-
3 ways to work out if a stock is good valueThe only thing you can really control in investing is the price you pay for an asset – but how can you tell if you’re getting a good deal when it comes to the price of a stock?
