23rd Jan 2014 11:36
LONDON (Alliance News) - San Leon Energy PLC Thursday said it has successfully completed flow testing on its Lewino-1G2 shale gas site in Poland's northern Baltic Basin.
The oil and gas production company, with operations in Europe and North America, said the Lewino-1G2 well reached a sustained gas production rate of 45,000 to 60,000 standard cubic feet per day after six weeks of well clean-up.
The company said that engineers estimate a potential rate from the site of 200,000 to 400,000 standard cubic feet per day of gas, based upon full clean-up of frac fluid.
San Leon said it has now achieved all of its goals in the Lewino testing programme, including extensive data gathering of crucial information required to understand how to achieve a positive frac at the site.
The company said that based on the results of its Lewino tests, it plans to go into test production from its first horizontal well and multi-stage frac at Lewino as soon as possible, subject to certain conditions.
San Leon is continuing development of operations onshore Poland despite questions over the effect of EU regulation and recent lower revisions of shale reserves by the Polish government.
On Wednesday, the European Commission proposed non-binding shale gas guidelines which included advising states to plan ahead and carry out extensive environmental tests, control emissions by capturing the gases, and involve the public early on.
The commission will review the situation 18 months on, and could decide to issue binding rules at a later stage.
Exxon Mobil Corp. has already decided to abandon its Polish shale operations, although other global players, such as US majors Chevron Corp. and ConocoPhillips, remain determined to extract shale gas in Poland.
San Leon Energy shares were up 9.1% to 4.34 pence, putting it in the top twenty AIM movers Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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