Lewino-1G2 Operational Update

RNS Number : 8924T

San Leon Energy PLC

26 November 2013

 



26 November 2013

San Leon Energy Plc

("San Leon" or the "Company")

Lewino-1G2 Operational Update

San Leon is pleased to announce the successful execution of the vertical hydraulic fracture stimulations ("fracks") of the two planned intervals in the Lewino-1G2 well on its 221,000 acre (894 km²) Gdansk W Concession in Poland's northern Baltic Basin.

Highlights:

·      Slickwater frack of the upper zone is believed to have achieved all of the technical targets of the frack redesign

·      Well has improved ability to recover treatment water compared with the July frack

·      Gas was continually flared for the duration of the initial clean-up period

·      Flow test to take place following removal of lower frack isolation plug, well completion installation and clean-up of stimulation water

A re-frack of the lower zone was pumped using 8,300 barrels of fluid and 76,000 lb of 40/70-mesh ceramic propant.  Additional redesign work was conducted using data from this re-frack (mainly to achieve a further increase in propant concentration for the next interval), a plug set above the lower interval, and the upper zone in the Ordovician was perforated and fracked.  This final stimulation, on the upper zone, was performed using 10,300 barrels of fluid, 245,000 lb of 40/70-mesh ceramic propant and 41,000 lb of larger 30/50 ceramic propant in the near-wellbore area.  The frack in the upper zone, which was achieved entirely using a slickwater design, is believed to have achieved all of the technical targets of the frack redesign.

The initial redesign of the frack treatments was carried out in conjunction with United Oilfield Services ("UOS"), and industry consultants Apex (Denver) and Fenix (Netherlands), using data from the original frack in July 2013.  High fracture conductivity, emphasis on connection to the wellbore, and the avoidance of oil-wet precipitates were all targeted.

Following the second of the two treatments, the well was flowed back from the single (upper) zone up 7" casing. Soon after starting the flow back, and before bottomhole liquids had reached the surface, material quantities of gas were observed on a sustained flare along with significant quantities of treatment water.  The well continued to flare gas for the duration of the initial clean up period (around a week).  The significantly improved ability of the well to recover treatment water compared with the July 2013 frack, continuous flaring, and the absence of oil-wet solids production, suggest a successful redesign.

Residual pressure from the fracks has now been reduced enough to allow snubbing operations, the isolation plug above the lower frack interval is now being removed, and the well completion installed. This work will take 7 to 10 days. The Company then plans to finish the clean-up of stimulation water, and perform a prolonged flow test using 2-7/8" tubing to quantify the gas flow rate and well potential. We will report these results in due course.

Executive Chairman, Oisin Fanning, commented:

"The behaviour of the well during these fracture treatments and throughout the subsequent initial clean-up period has far exceeded expectations, and we look forward to finishing the clean up after running the well completion, and to the subsequent flow testing."

San Leon Energy plc		[phone]
	Oisin Fanning, Executive Chairman
Fox-Davies Capital Limited		[phone]
	Daniel Fox-Davies
	Oliver Stansfield
	Jonathan Evans
Macquarie Capital (Europe) Limited		[phone]
	Steve Baldwin
	Nicholas Harland
FirstEnergy Capital LLP		[phone]
	Hugh R. Sanderson
	Jonathan Wright
	David van Erp
Westhouse Securities Ltd	Nominated Adviser	[phone]
	Richard Johnson
	Antonio Bossi
Vigo Communications	Financial Public Relations	[phone]
	Patrick d'Ancona
	Chris McMahon
College Hill	Investment Relations Adviser	[phone]
	David Simonson
	Alexandra Roper
Plunkett Public Relations		[phone]  [phone]
	Sharon Plunkett
	Jennie Cotter

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 the Head of Engineering for San Leon Energy and is based in San Leon's London office.

www.sanleonenergy.com

 

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