San Leon shares rocket on gas and oil recovery in Poland

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.

Start your trial of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

"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