Apr 02

Prospective Resources Estimates Announcement

By Curve San Leon Energy No Comments »

 

San Leon Energy, the fast growing oil and gas company with an extensive portfolio of assets across Europe and North Africa, notes this morning’s announcement from Longreach Oil & Gas Ltd (Longreach), updating on the independently evaluated resource estimates for the Foum Draa and Sidi Moussa licences, offshore Morocco, by Netherland, Sewell & Associates Inc. San Leon owns a 42.5% net operated interest in these licences.

The full announcement by Longreach stated the following:

Prospective Resources Estimates

Longreach is pleased to announce prospective resource estimates for offshore licences Foum Draa and Sidi Moussa, independently evaluated for the Company by Netherland, Sewell & Associates Inc. (NSAI), in accordance with NI 51-101 disclosure requirements.

NSAI have estimated unrisked prospective resources, as of 31st December 2011 for 14 identified prospects and 8 additional leads located in the Foum Draa and Sidi Moussa licences, offshore Morocco. The prospects are Triassic to Paleocene in age and there are a variety of trapping mechanisms such as tilted fault blocks, stratigraphic pinch outs and salt related traps over and against salt diapir flanks. The reservoir rock types are mainly sandstones, but there is also a shelf edge Jurassic carbonate play.

Unrisked prospective resources have been estimated as follows:

Unrisked Prospective Resources

Gross (100 Percent)

Longreach Gross Interest¹

Oil

Gas

Oil

Gas
Category

(MMbbl)

(Bcf)

(MMbbl)

(Bcf)
Low Estimate

751.7

302.9

56.4

22.7
Best Estimate

2138.8

1008.5

160.4

75.6
High Estimate

6105.3

3145.3

457.9

235.9

¹ Figures calculated net of ONHYM’s 25% back in, giving Longreach with a 7.5% working interest

Unrisked prospective resources are the arithmetic sum of multiple probability distributions. Longreach owns a 7.5% interest in these prospects and leads. A copy of NSAI’s report has been filed on SEDAR.

A dataroom to attract industry partners ahead of commencing a drill campaign was opened on 22nd February and will remain open until 4th May 2012. 18th May has been set as a date for receiving note of Interests from prospective farminees, with final bids to be received by 15th June 2012.

Commenting, Bryan Benitz, Chairman and CEO of Longreach, said:

 

“Management believes that these unrisked prospective resource estimates reinforce the excellent work that Technical Operators, Serica Energy have done on these licences over the past two years and demonstrate the significant potential these licences have. The largest identified prospect, Apricot, is a stratigraphic pinch out play concept with dual target potential. NSAI’s report states the best estimate of unrisked prospective resources to be 584 MMbbls and 350 Bcf for this dual target prospect, which management believes is significant in its own right.

 

The dataroom has already attracted significant interest and we look forward to concluding this process in June.”

Source: San Leon Energy

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Jan 25

San Leon Energy Plc Announces Completion of Morocco 2D Seismic Campaign

By Curve San Leon Energy No Comments »

 

Wednesday, January 25th, 2012

San Leon Energy Plc (AIM:SLE) (“San Leon” or the “Company”) is pleased to announce that it has completed the acquisition of more than 2,280 km of 2D seismic across its Tarfaya and Zag Licenses onshore Morocco. The data was acquired by San Leon Energy’s wholly owned subsidiary, NovaSeis.

608 line km of high density 2D seismic data was acquired on the northern portion of the San Leon operated Tarfaya License across the J North prospect. This adds to the existing 2,289 line km of existing 2D seismic across the license. The Netherland, Sewell & Associates 2008 CPR placed 156 million barrels of recoverable prospective oil resources in the J North prospect with upside potential of more than half a billion barrels. In total San Leon currently has 12 leads and prospects across the Tarfaya license with net prospective resources of 711 million barrels of oil equivalent based on the Netherland, Sewell & Associates 2008 CPR. Several new adjacent leads have also been identified around J North as a result of the new 2D seismic data.

The new seismic data quality is significantly improved compared to previous 2D seismic data in the area as a result of longer offsets and higher density acquisition. The new data is currently being processed and interpreted by the Company in its Warsaw office.

1,674 km of 2D seismic data was acquired across the San Leon operated Zag License in Morocco (greater than 5 million acres). This is the first seismic data ever acquired across the Zag License. The combined Zag Basin aeromagnetic survey acquired in 2009 by San Leon and the adjacent license to the north was the basis for the layout of the 2D program. The Company is focusing on the Zag license for both conventional and unconventional oil and gas potential. The unconventional gas potential is primarily within the Silurian interval, whilst the conventional oil and gas potential is in the Ordovician and Devonian intervals.

The Company will continue integrating the new seismic results into its existing basin model in preparation for opening a data room to seek partners for the exploration drilling phase. Any future exploration activities in the Southern provinces will, as they have been to date, be in accordance with international law.

NovaSeis (“the Crew”) was established by San Leon to acquire its onshore seismic data at lower cost with the flexibility to optimise acquisition parameters in difficult data areas. The Crew currently has 1,200 channels of Geospace Technologies (subsidiary of OYO Geospace) cableless GSRs with five Sercel NOMAD vibrators. The Company plans continued investment into NovaSeis to expand its capabilities to 3D acquisition this year as part of upcoming seismic acquisition programs in Poland. While NovaSeis was created to serve the needs of the San Leon Energy group, it is also available to acquire revenue-generating projects outside the Company.

Oisin Fanning, Chairman of San Leon, commented:

“We view Morocco as a long term project for the Company with significant upside over a huge unexplored area. The excitement of the potential of Morocco is based upon the significant production in the same basin in Algeria as well as the huge potential for a Silurian shale gas play. The completion of our seismic program is the next step in bringing our projects closer to drilling.

I am also very pleased with our investment in NovaSeis which has helped us acquire high quality, low cost seismic and given us the flexibility to acquire more data per line km than we could have using a more conventional cable acquisition system. The next step for NovaSeis is to return to Poland where the wireless system will make a real impact by significantly reducing the surface impacts of seismic acquisition while giving us the flexibility to acquire data in areas that a traditional system would not be possible.”

Source: San Leon Energy

 

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Jan 20

San Leon Energy Announces Tarfaya Oil Shale Update – Hydraulic Connectivity Established

By Curve shale gas No Comments »

 

San Leon Energy PLC

Tarfaya Oil Shale Update

RNS Number : 4968V
San Leon Energy PLC
13 January 2012

San Leon Energy Plc

(“San Leon” or the “Company”)

Tarfaya Oil Shale Update – Hydraulic Connectivity Established

San Leon is pleased to announce that is has established connectivity between its two test wells in its Tarfaya Oil Shale project.  Injection water has been observed in three wells, including pilot Well A and Well B drilled by the Company as part of the pilot project, and the pre-existing Star 12 core hole.  Several transmissivity and static formation pressure tests were performed to identify the origin of the water which have confirmed connectivity between the two pilot test wells which are ~10 meters apart.  Operations have been temporarily suspended pending continued technical analysis and forward operational planning.

Based on the test results, the Company has reached the following conclusions:

Well A, Well B and Star 12 are hydraulically connected through a permeable zone from 191.00 to 197.62 meters below ground level (mbGL);

Star 12 provided, over a long period, a flow path from the upper aquifer, feeding the permeable zone below 184.80 mbGL;

After cementation of the Star 12 well, the formation from 191.00 – 197.62 mbGL acted as a closed system with depletion related to formation water production (via airlifts);

The water samples suggest that the water from the deep permeable zone is similar to the shallow aquifer.  The water contains primarily sodium chloride (78-91% of dissolved solids by weight), with small amounts of magnesium, calcium, potassium, sulfate and nitrate.

Despite establishing hydaulic connection between the two pilot wells, the Company has decided not to risk contaminating the shallow water aquifer.  Further analysis will be performed prior to resuming operations either at the same location or at an alternative site.

Based on the recent results the Company will now identify an alternative drilling site away from existing wells to test the extent of the play and the associated water acquifers.Future wells will be cored and completed based upon the new information gained during this phase of the pilot project. In parallel, a hydrodynamic study of the basin is being contemplated to understand the regional aquifer systems in relation to the potential oil shale pay zones.

A permanent presence has been maintained at the site to ensure the security of the equipment and facilities installed to date.

The Company has been contacted by several companies with oil shale experience regarding partnering with San Leon on the Tarfaya Oil Shale project.  A data-room is now open that includes geotechnical information as well as engineering designs for the pilot plant.  The Company is in active discussions with interested parties.

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 and to rapidly progress toward operations of the processing pilot plant designed and built for the project. Several firms have expressed a desire to partner with us in the project, confirming our belief  that the Tarfaya oil shale resource development represents a significant opportunity as an unconventional play.”

Source: San Leon Energy

 

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