San Leon Energy announces that application has been made for the admission to AIM of 165,000 new ordinary shares of €0.05 each in the Company, pursuant to the exercise of warrants.
Read the pdf version of the announcement here
Feb 16
Press Release issued by San Leon Energy Regarding the Completion of Siciny-2 Well
San Leon, the fast growing oil and gas company with an extensive portfolio of assets across Europe and North Africa, is pleased to announce that it has completed the drilling, initial evaluation, and has cased its Siciny-2 well in the SW Carboniferous Basin of Poland, which comprises of 880,000 acres held 100% by San Leon. The well is located in the company’s 100% operated Gora Concession 70km to the southeast of the city of Zielona Gora.
The initial goal of collecting core and downhole geophysical data focused on understanding the unconventional gas potential of the Carboniferous section has been achieved. The Carboniferous is known to be the source rock for the significant gas production in the overlying Permian Rotliegendes formation in Poland.
The stratigraphic test well reached target depth of 3,520 meters after penetrating more than 1,000 meters of Carboniferous section. More than 265 meters of continuous core were collected across three prospective intervals identified in the Siciny-1 well. A previously unseen fourth potential Carboniferous shale section and a fractured tight gas sandstone was also encountered below 3,200 meters in the well.
Tight rock analysis will be performed on the core to evaluate the potential for commercial shale gas and tight gas sand production. Valuable drilling data was also obtained in drilling the complex structure of the Carboniferous section, allowing the Company to reduce the time and cost of drilling future wells.
During drilling, continuous gas shows (C1-C3) were encountered across the four prospective shale intervals as well as through the tight sandstone interval. Evaluation and interpretation of the core and logs is expected to take 3-4 months in preparation for future production testing operations. The well was cased for further operations, which could include, pressure testing of the prospective zones (DFIT test) and also possible vertical fracture stimulation and production tests across several intervals.
The Company is focusing on analyzing the final technical results of the well in preparation for testing.
Oisin Fanning, Chairman of San Leon commented:
“We are encouraged by the initial results of the Siciny-2 well showing four potential zones for unconventional gas production, including a newly identified interval. In total we encountered more than 500 meters of potential reservoir for further analysis and possible testing. The complex nature of the Carboniferous source rock, including natural fracturing, shows real promise for gas production. Based upon these initial results we have completed the well for future testing operations.
The successful drilling and completion of the Siciny-2 well is another milestone in proving our operating capabilities and the potential of our diverse exploration portfolio.”
Source: San Leon Energy
Feb 09
10 February 2012
Dublin, Ireland
San Leon Energy Plc
(“San Leon” or the “Company”)
Testing the Eastern Baltic Basin – Rogity-1 Well Drilled
San Leon, the fast growing oil and gas company with an extensive portfolio of assets across Europe and North Africa, is pleased to announce the successful completion of its second shale gas exploration well in Poland’s Baltic Basin. The Talisman Energy operated Rogity-1 well, on the Braniewo S Concession in Poland, has been drilled to a depth of 2,788 meters. During drilling continuous gas shows were encountered over more than 500 meters of the Lower Silurian, Ordovician, and Middle Cambrian sections. The rich gas shows consisted of heavy hydrocarbons, including C1-nC8. The richness of the gas shows is consistent with a wet gas system, confirming the Company’s regional model of the eastern side of the basin being in the oil window. The strongest gas shows, along with indications of oil, were encountered in the Lower Silurian interval, which is estimated to be over 100 meters thick. Oil shows were also encountered in Ordovician limestones and shales, and in Middle Cambrian sandstone.
334 meters of continuous core were taken in the well to evaluate the reservoir properties and mechanical properties of the Lower Silurian, Ordovician, and Middle Cambrian sections. In addition an extensive open hole logging program was also performed to further evaluate the potential of the well. Evaluation and interpretation of the core and logs is expected to take 3-4 months in preparation for continued operations later in 2012. The well was completed and cased for future operations, which could include pressure testing of the formations (DFIT test) and a possible vertical frac across several intervals. Future operations in the Braniewo S Concession are expected to include a long offset horizontal well as well as a multistage frac.
Talisman will next move the rig to the Szczawno concession to drill the Szymkowo-1 well.
Oisin Fanning, Chairman of San Leon commented:
“We are excited by the successful drilling and significant data gathering at the Rogity-1 well. Our initial results show the regional variability of the basin and have confirmed our model of a more liquids rich system on the eastern edge of the basin. This is yet another milestone for San Leon and our successful partnership with Talisman Energy. Our continued systematic approach towards evaluating our geographically and geologically diverse unconventional gas acreage in Poland is paying off.”
Notes to editors:
San Leon is an independent fast growing oil and gas exploration company and is Europe’s leading shale gas company by acreage. The Company has an extensive portfolio of assets in Europe and North Africa that will enable it to provide energy solutions for the future.
San Leon’s assets are located in Poland, Morocco, Albania, Ireland, Spain and Italy. The Company’s portfolio across these geographies is made up of both shale (Poland Baltic Basin, Morocco and Spain) and conventional exploration assets.
San Leon’s key objective is to grow the Company significantly and to become a leading European oil and gas player delivering value to all its stakeholders. To achieve this San Leon, since it was founded in 1995, has built a balanced portfolio as well as an exceptional technical team.
The Company is listed on London’s Alternative Investment Market (ticker symbol: SLE). As at 30 June 2011 the Company had €42.2 million of cash and cash equivalents.
Feb 01
31 January 2012
San Leon Energy Plc
(“San Leon” or the “Company”)
Creation of an advisory committee
San Leon Energy, the fast growing oil and gas company with an extensive portfolio of assets across Europe and North Africa, is pleased to announce the formation of an advisory committee (“Advisory Committee”).
A key role of the Advisory Committee will be to work alongside the management team when considering macro issues associated with the industry. The Advisory Committee will be made up of a number of experienced industry professionals who have a wealth of experience in the energy industry. It is expected that the Advisory Committee will help San Leon build on the success that the Company has already achieved as well as provide senior guidance, invaluable strategic and industry insight, as well as their expertise and advice as the Company looks to continue to develop its portfolio of assets. A key role of the Advisory Committee will be to working alongside the management team and evaluate new opportunities that the Company is investigating.
The Advisory Committee will initially be made up of the following members, with Nick Butler also serving as the Advisory Committee’s Chairman:
Nick Butler, Chairman, is Visiting Professor and Chair of the Kings Policy Institute at Kings College London as well as an energy consultant to a number of companies working internationally in the natural gas and renewables industries. He has worked previously for BP, where he served as Group Vice President for Strategy and Policy Development from 2002 to 2006 and as Senior Policy Adviser to the Prime Minister on business policy issues up to the May 2010 election.
Gerard Medaisko is a geologist by training who has worked in the industry for over 50 years. He has previously worked with a number of companies holding numerous positions including CEO of Transworld Petroleum. He also founded natural resource company Geotherme. He was also Chief Petroleum Advisor to the Department of Technical Cooperation for Development and the United Nations Institute for Training and Research at the United Nations. Currently he is President and CEO of Westbank Resources, President of G.S Medaisko Associates PLC and is also a consultant to the United Nations.
Robert Price is an energy industry professional who has worked across numerous aspects of the energy industry. He has worked at First National bank and Trust Company (now JP Morgan Chase Bank) as well as setting up his own oil and gas exploration company, Brooks Energy, focussed in the mid-continent and Rocky mountain regions. He was also a member of the US Department of the Interior’s Mineral Management Service Royalty Policy Committee as well as serving on numerous other state and local civic boards and commissions. He is also founder and Chairman of Zeledyne, the manufacturer and distributor of automotive glass.
Oisin Fanning, Chairman of San Leon, commented:
“The creation of the Advisory Committee is another important step in our development. This committee brings together exceptional talent with wide ranging expertise across many aspects of the energy environment.
To have attracted individuals of this calibre is a testament to the excellent team that we already have in place as well as the exciting potential that we believe is inherent across our portfolio.
This provides San Leon with a unique and unrivalled pool of knowledge that will accelerate the development of our assets and grow our company further for the benefit of all our stakeholders. We look forward to working with the Advisory Committee and benefitting from their expertise and insights.”
Notes to editors:
San Leon is an independent fast growing oil and gas exploration company and is Europe’s leading shale gas company by acreage. The Company has an extensive portfolio of assets in Europe and North Africa that will enable it to provide energy solutions for the future.San Leon’s assets are located in Poland, Morocco, Albania, Ireland, Spain and Italy. The Company’s portfolio across these geographies is made up of both shale (Poland Baltic Basin, Morocco and Spain) and conventional exploration assets.
San Leon’s key objective is to grow the Company significantly and to become a leading European oil and gas player delivering value to all its stakeholders. To achieve this San Leon, since it was founded in 1995, has built a balanced portfolio as well as an exceptional technical team.
The Company is listed on London’s Alternative Investment Market (ticker symbol: SLE). As at 30 June 2011 the Company had €42.2 million of cash and cash equivalents.
Jan 30
Shale gas exploration is risky, according to San Leon Energy’s Director of Exploration John Buggenhagen, who spoke about assessing the prospects for shale development in Poland at Shale Gas World Europe 2011.
“If you came for answers,” he quipped, “you’re going to leave disappointed, because you’re going to leave with more questions. We are in a very early phase of the exploration here in Poland.”
Mr. Buggenhagen said he was a bit irritated with press reports that had written off Poland’s shale gas prospects. “They create fear and panic in the marketplace and that takes away everything we are trying to do in the industry.”
As an example, he showed a quote from the Economist which wrote that the geology was “less favorable” in Poland than in North America.
“Right now we’re in a flux of regulatory, economic, political and investment issues surrounding shale gas. If you read what’s going on in the investment world, because we’re a public company I have to take all this into a balance. And I can’t say it more clearly: Exploration is risky. We just started doing this.”
He continued: “I think everyone needs to ask themselves, how we’re going to get from here to commercial gas production that’s going to change the energy environment in Europe, and here in Poland locally.”
Mr. Buggenhagen explained that San Leon was a small, listed company that had built a tremendous asset base through acquisitions of companies, taking advantage of the tough market conditions. “Through takeovers of two Canadian companies and an Irish one, we’ve amassed one of the largest shale gas portfolios in Europe, and that’s significant because it’s how we’ve gone about doing this that is the first step in where shale gas is going in Poland.”
He said San Leon’s core portfolio started in Poland, that he himself had been looking into opportunities for five years and the key to that was being on the ground.
“Recent acquisitions of Realm Energy have increased our portfolio. We also have almost 2.5 million acres under application in Spain for unconventional gas; we also have significant applications in France; and we are looking at other countries as well including Morocco, where we have a tremendous shale gas position, again limited by some of the political issues.”
When one looked at the resource estimates, according to him, one saw tremendous numbers. “Just net to my company in Poland, we have the potential for more than 40 TCF of recoverable gas – those numbers are scalable throughout our portfolio. This is not just a well or a small field. This is a game changer, for everyone that’s involved here in Poland.”
He showed delegates San Leon’s vast, significant and well diversified positions in Poland, the company’s 14 concessions, spread throughout Poland.
“Where’s the sweet spot, the production center that’s going to fuel the growth that’s going to start this industry up? So we spread our blocks around the basin based on various geologic parameters.”
He reported that in southwest Poland San Leon had 1 million acres of contiguous position in the Permian basin. “We are leading the exploration effort there – actually drilling the first well targeting unconventional gas in the carboniferous section in Poland and hope to be reporting results in the coming months.”
“A quote I like that I heard very recently is ‘Every well that’s drilled in Poland is redefining the stratigraphy, the geology of the Baltic basin and the potential of Poland in general. Modern core, modern logs, modern drilling techniques – this is all new to Poland in terms of exploring for shale.”
Buggenhagen contended the results that San Leon and others were seeing in Poland were very different results from the model. “That’s neither good nor bad, we’re just having to re think the model that started this shale gas boom here in Poland.”
He mentioned that San Leon had become the largest net acreage holder for unconventional gas in Poland, in the Podlasie, Baltic and Carboniferous basins.
“We’re a small company, we use every penny that we have wisely. And we’re very aggressive – that’s a very delicate balance to maintain,” he said.
He noted that fewer than 15 wells had been drilled in Poland and said: “We know there’s shales in these rocks, but can we get the gas out of the ground?”
“After two wells, people have written off the basin,” he explained. The people in this room have invested so much as to not even consider that possibility.”
Providing the US’s Barnett shale and its progression over time as an example, Buggenhagen said, “I think we’re back in 1997, maybe even before that, in Poland, we’ve just started. Here we don’t have the benefit of the conventional production that preceded the unconventional in the Barnett.”
“It took George Mitchell 20 years,” he recalled. “The Bakken was a drilling hazard, people thought it was a crazy idea and now it’s producing.”
Despite an earlier protest before the start of the conference, he noted that Poland was very pro shale gas. “They understand that indigenous energy is better than imports; I can’t think of a dirtier energy resource than coal,” he commented.
He described what he said was “information chaos” surrounding– everyone’s looking at where the investment for the future was going to come from. “It’s important for us to be very open with the public, with the regulators and influence things to make for a positive industry.”
Referring to the demonstration, he said “What happened today is a tool for sorting out the balance, and keeping the industry honest.”
“It’s not going to happen overnight, it’s going to take time,” said Mr. Buggenhagen, who summed up of Poland’s nascent unconventional gas industry. “Look at the history of Poland – 23 years later the country has come very far in a short time, but we have a long way to go as an industry, as operators, contractors and regulators. As an industry it’s incumbent upon all of us in this room to get together to figure out how we can solve these issues.
“It will change the economy and energy balance of Europe and here locally it will change Poland and how it fits into the European Union going forward.”
Source: Natural Gas for Europe
Jan 25
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
Jan 20
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
Jan 17
An important announcement from San Leon Energy this week; details on the Durresi licence in Albania. Here’s the full press release:
San Leon Energy is pleased to announce significant progress on its 100% owned Durresi License (4,208 km2) in Albania. The Company has received the first final processed volumes from its 840 km2 3D seismic survey in late 2011. The survey was processed by Western Geophysical in London with a focus on detailed structural imaging incorporating relative amplitude preservation for the detection of subtle stratigraphic prospects on the flanks of the complex structural setting offshore Albania.
Continued processing of the new 3D and existing 2D and 3D seismic for the detection of stratigraphic traps is being performed in the Company’s Warsaw office in conjunction with continued detailed subsurface analysis. Initial modeling of the seismic response from existing well data has proven the potential for using seismic amplitude analysis for the direct detection of hydrocarbons. This means significantly reduced exploration risk for prospects.
The Company’s Albania subsurface team, located in its Warsaw office, continue to interpret the extensive 2D seismic database (>5,000 line km) over the license and is now integrating the new 3D seismic interpretation. Initial results of the new interpretation has identified several new large oil and gas prospects across the many petroleum systems that exists across the Durresi License.
To date the Company has identified numerous prospects and leads across the license with unrisked prospective recoverable resources of more than 1 billion barrels of oil equivalent across the proven petroleum systems. Six source rock intervals have been identified with several potential oil reservoirs expected in Mesozoic carbonates and flysch as well as numerous gas reservoirs in the shallower Tertiary clastic deposits. The San Leon subsurface team continues to identify prospects across the license.
The Company has recently signed Confidentiality Agreements with several large E&P companies regarding farming into the license; and continues to receive unsolicited interest from other large E&P companies. As a result of which San Leon have opened the data room early to select companies and have already recently been visited by several companies. Plans to drill the first of a two well exploration program on the block are being made for late 2012/2013.
Oisin Fanning, Chairman of San Leon, commented:
“We continue to make rapid progress on our Albania project. After being awarded the Durresi License in February 2011 we quickly shot our 3D program and, less than a year later, are identifying numerous high quality oil and gas prospects across the license. The new 3D has revealed several large structural oil and gas prospects and is showing the significant stratigraphic potential that exists across the license. The possibility of using seismic amplitudes to significantly reduce exploration risk further demonstrates the high potential of offshore Albania.
We are very excited by the potential of the Durresi License and the interest that we are receiving from industry leading E&P companies to gain access to this high potential area.
Albania is quickly becoming a core focus area for San Leon given the huge upside potential, lower risk exploration and the level of interest that we have received from leading E&P companies.”
Source: San Leon Energy
Jan 06
The Irish Examiner goes into more detail on the agreement reached between San Leon Energy and Providence Resources, earlier this week:
Exploration firm Providence Resources has increased its equity stake in the Barryroe well, off the Cork coast in the Celtic Sea, to 80%.
The company already owned a 50% stake in the asset — which marks the starting point on its wide-reaching drilling campaign offshore Ireland — but is now acquiring the 30% controlled by San Leon Energy.
San Leon will receive a 4.5% net profit interest in the licence.
After the transaction is completed — pending Government approval — Providence will have an 80% share of Barryroe and will continue as operator of the licence, while Lansdowne Oil & Gas will hold the remaining 20%.
Providence’s chief executive Tony O’Reilly Jnr said: “This transaction makes perfect strategic sense for both companies, allowing each to focus on their respective core areas. Providence remains firmly focused on its Irish port-folio, with the Barryroe appraisal well being the first well of its multi-year,multi-basin drilling programme.”
Providence issued its end-of-year trading review on Thursday in which Mr O’Reilly said “the time has come” for Ireland’s hydrocarbon potential to be realised.
Touching on the firm’s ambitious drilling plans for Irish waters over the next few years, he mentioned recent appraisal drilling at Barryroe and said the significance of this should not be underestimated.
“The successful demonstration of a commercial flow rate should not only unlock the substantial value of this particular asset, but should also trigger a complete industry re-appraisal of the Irish offshore,” he added.
Full results from appraisal works at Barryroe will be known in the coming weeks. Following Celtic Sea drilling — at both Barryroe and Hook Head — Providence will begin drilling at its Kish Bank Basin asset, off the Dublin coast near Dalkey Island; before moving north to Rathlin Island.
Source: Irish Examiner
Dec 15
San Leon Energy and Talisman have spudded the Rogity-1 well in the Braniewo S Concession Basin. T
Talisman is the operator of the well and is once again targeting unconventional gas in the form of shale in the Lower Silurian, Ordovician and Upper Cambrian layers. This is the second well to be spudded in a three-well program, with the third well due to be drilled in the Szczawno Concession in early 2012.
The Rogity-1 well, which is located at the easternmost penetration of the Paleozoic section in the Baltic Basin, may be risky but rewarding, San Leon says.
“This area is believed to be less thermally mature and is considered to carry more risk than the western part of the Baltic basin, but the company believes it has the potential for a more liquids rich production,” a statement for San Leon says.
Source: Natural Gas for Europe
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