21st Aug 2014 12:38
LONDON (Alliance News) - San Leon Energy PLC Thursday said it has exited Germany and Slovakia as part of its asset optimisation strategy.
The AIM-listed company focused on oil and gas exploration said it has also made a decision to relinquish its assets in Italy. In Poland, nine concessions have been partly or fully relinquished, while the company has relinquished the Tarfaya oil shale licence in Morocco because the Timahdit licence offers greater oil shale potential.
San Leon said its joint venture partner Palomar Natural Resources plans to spud a well on the Rawicz gas field in the Permian Basin in Poland in the fourth quarter, and is actively working up plans for the other areas of the joint venture.
A new three-well drilling program is set to start in the Karpaty area and Permian Basin, it said. A rig has been secured, and the first well is scheduled to spud in mid-September.
San Leon said Palomar has now assumed day-to-day running of the various joint operations and several San Leon staff have moved to Palomar, which has established a Warsaw office.
San Leon Executive Chairman Oisin Fanning said the company continues to farm out assets and drill wells to progress towards production and cash flow.
"Palomar are moving quickly with a programme for developing the Rawicz field and planning activity on other areas of the joint venture, and the three-well drilling campaign in Karpaty and the Permian Basin is part of our strategy to target early production," Fanning said in a statement.
San Leon also said the planned Lewino horizontal well in the Gdansk W shale gas concession is in advanced engineering planning. Fanning said initial results of the Conoco/3Legs and BNK horizontal wells "appear positive." He said further results are expected soon.
Meanwhile, Fanning said that San Leon's Timahdit oil shale project "continues to show its long-term potential" to generate up to 11,000 barrels of oil per day for 30 years. He added that the current work is designed to build the business case to attract capital investors.
He said the Nour well, offshore Morocco, also currently being drilled, has potential for "abundant newsflow".
San Leon shares were Thursday quoted down 0.4% at 2.70 pence.
By Samuel Agini; [email protected]; @samuelagini
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