San Leon Energy, the north Africa-focused oil and gas explorer, says it has achieved "connectivity" between two test wells at its Tarfaya oil shale project in Morocco.
The company says test well A and B are "hydraulically connected through a permeable zone from 191.00 to 197.62 meters below ground level".
The proven connection between the wells has prompted San Leon to look for an alternative drilling site "to test the extent of the play and the associated water aquifers".
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
San Leon says it is in "active discussions" with "interested parties" over partnering at Tarfaya and a data room has been set up so those companies can assess results so far.
Oisin Fanning, Chairman of San Leon, commented: "We are delighted to have confirmed natural connectivity between the wells. However, we have decided that San Leon should not be taking any environmental risk whilst we aim to continue to prove up the in situ extraction concept of the Tarfaya oil shale resources."
San Leon shares have lost 59% of their value over the last 12 months.
BS
-
Charitable giving and inheritance tax: 7 tips to avoid complicationsGiving some of your estate away to charity can save your family thousands in inheritance tax. But common pitfalls could mean your chosen cause loses out and your loved ones are left with a complex nightmare to unravel. We look at how to do donations right.
-
The UK cities where it’s cheaper to buy a house than rentFor people in some areas of the country, home ownership is a distant dream. But for others it can be surprisingly affordable.
