San Leon Energy discovers oil on Nowa Sol

San Leon Energy has announced its discovery of oil at the Lelechow-SL1 well which it has now finished drilling to a depth of 1,167 metres.

The well is the first of a two-part drilling programme on its wholly-owned Nowa Sol concession which is targeting the main dolomite trend in the Southern Permian basin in southwest Poland.

So far the results indicate that the target is highly fractured and contains moveable oil. Oil was recovered to the surface during initial clean out of the well.

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The next step is for San Leon to incorporate an electrical submersible pump to continue to clean out the well and maximise oil flow rates during production, after which it will resume testing. Well completion is being designed for near-term commercial production from the well.

Executive Chairman, Oisin Fanning said: "It is very encouraging to be able to report oil in our first well on the Main Dolomite trend in Poland that resulted from our own 3D seismic survey and interpretation on the Nowa Sol Concession. We will only know the oil production potential and recovery rates once the well is completed, cleaned up and tested but are excited because the fractured nature of the Main Dolomite offers significant upside in the play."

The company will now move the rig to allow it to begin drilling on the second well on the concession.

The share price rose 2.08% to 12.25p by 15:07.

NR