San Leon Energy to start drilling on two wells, unveils JV deal

Oil and gas explorer San Leon Energy has announced that it is preparing to start drilling on a two-well exploration programme which will test the conventional oil potential of the Main Dolomite in the Southern Permian Basin on its wholly-owned Nowa Sol Concession.

The first well will be drilling in mid to late July, and the second well immediately after.

San Leon also announced that it has formed a joint venture (JV) with Celtique Energie Poland, with a view to jointly developing the existing Celtique concessions.

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

San Leon will acquire a 50% working interest in two Polish concessions, namely Block 243 and Laski, for a committed work programme including acquiring two new 3D seismic surveys on the concessions, as well as committing to drilling a well in Block 243 targeting the Permian Main Dolomite. San Leon will become the operating partner on Block 243, which spans 236,480 acres.

The company has the option to participate in a 50% share of the proposed well costs to retain its interest in the concession, otherwise it will relinquish its interest in Laski, which covers an area of 60,047 acres.

Oisin Fanning, Chairman of San Leon, said: "In conjunction with drilling the two exploration wells in Nowa Sol this is a great deal for both San Leon and Celtique.

"It exposes San Leon to additional high quality exploration acreage in Poland on trend with upcoming projects, and gives Celtique access to San Leon's proven operating capabilities, including NovaSeis in Poland. This deal further solidifies San Leon's commitment to developing significant oil and gas reserves in Poland in the near term."

NR