San Leon Energy posts strong results from Poland

Oil and gas explorer San Leon Energy has unveiled a positive set of initial results from the Siciny-2 well in Poland, saying they have proved the 'huge upside potential' of the carboniferous basin.

The firm said it encountered continuous gas shows throughout the well and that based on the results of the analysis of the core, it has been able to deterine the quality of five prospective zones for unconventional gas accumulations.

In zone 1,151 metres of net oil pay was indentified, resulting in a free gas in place estimate of 163bn cubic feet (bcf) and a total gas estimate of 193 bcf.

Subscribe to MoneyWeek

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

Get 6 issues 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

Sign up

In the second zone, which had 240 metre gross interval, more than 32 metres were identified as net pay with potential net pay of 188 metres. Calculated free gas in place for the interval is estimated to be 64 bcf/square mile, with a total 97 bcf/square mile. Based upon gas samples and mud log shows, the gas is estimated to be primarily dry gas.

Zones 3-5 offer three potential prospective, highly fractured organic rich shale intervals with a total gross thickness of 430 metres between 2,065 and 2,610 metres. 250 metres of whole core was taken over three of the intervals.

Oisin Fanning, Chairman of San Leon, said: "We are more than encouraged by the potential of the carboniferous to be a significant gas producer in Poland. The initial results of the Siciny-2 well are very exciting and we plan to move forward in testing several of the prospective intervals in the well in the near future.

"This was the first modern well to test the carboniferous potential of the basin. It is a proven source rock interval that has generated a lot of gas with significant upside in thick tight sands in the basin. The Siciny-2 well has proven that there is very real potential in the play. We plan flow testing in 2012 with continued drilling in 2013 across our extensive position in this play, including the new Concessions we recently acquired as part of our joint venture with Hutton Energy."

The share price rose 3.16% to 8.15p by 14:03.

NR