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.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

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

"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.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.