Kety Well Update

RNS Number : 1611W

San Leon Energy PLC

05 November 2014

 



5 November 2014

San Leon Energy plc

("San Leon" or "the Company")

Kęty Well Update

San Leon, the AIM listed company focused on oil and gas exploration in Europe and North Africa, announces that the Kęty exploration well has reached a total depth of 705m MDBRT (measured depth below rotary table).  The gas encountered is considered uncommercial following testing, and the well will be plugged and abandoned.

The Kęty well, which is on the Bestwina concession in Karpaty, Poland, was targeting gas in the Miocene sandstone. It is apparent that several sandstones exist within the target depths, but an overlying fault appears to have compromised the seal, resulting in low gas saturations. Open-hole well testing was performed on three intervals, with only minor gas production. The cost of open-hole testing was around €150,000 gross.

The rig will now move to the second well in the three well drilling programme, the Gierałtowice prospect on the Bielsko-Biała concession in Karpaty, targeting 4 Bcf of mid-case recoverable gas in two target reservoirs - the Upper Carboniferous sandstone being the primary target with the Lower Carboniferous limestone as a secondary target.

San Leon Energy holds 60% and is operator of both the concessions, with PGNiG holding the remaining 40%.

Oisin Fanning, San Leon Executive Chairman, commented:

"The sub-commercial gas in the Kęty well is disappointing, although the presence of sandstones - the potential absence of which was a major pre-drill risk - is encouraging for other future wells in the area.  We look forward to the results of the remaining wells in the drilling programme, whose chances of success will be unaffected by the Kęty well."

Qualified person

Joel Price, who has reviewed this update, has 20 years' experience in the oil & gas industry and is a member of the Society of Petroleum Engineers. He holds a BA in Natural Sciences from Cambridge University, an MEng from Heriot-Watt University, and an MBA from Durham University. Joel is Chief Operating Officer for San Leon Energy and is based in San Leon's London office.

For further information contact:

San Leon Energy plc  Oisin Fanning, Executive Chairman	[phone]
finnCap Ltd  Corporate Finance Matt Goode Christopher Raggett Corporate Broking Elizabeth Johnson Joanna Weaving	[phone]
Fox-Davies Capital Limited Daniel Fox-Davies Oliver Stansfield Jonathan Evans	[phone]
Macquarie Capital (Europe) Limited Jon Fitzpatrick Nicholas Harland	[phone]
Westhouse Securities Ltd Nominated Adviser Richard Johnson Antonio Bossi	[phone]
Vigo Communications Financial Public Relations Chris McMahon Peter Reilly	[phone]
Plunkett Public Relations Sharon Plunkett	[phone]

www.sanleonenergy.com 

 

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