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".
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
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
-
Norfolk or Norway? Holidays you can afford with different-sized pension potsMany people look forward to taking more holidays when they retire. But what sort of trips could your pension buy you? We look at the holidays to match different retirement incomes
-
Q&A: Issac Thong – new lead manager of Aberdeen Asian Income Fund
