10th Mar 2014 10:03
LONDON (Alliance News) - San Leon Energy PLC Monday said high quality oil has been recovered from ongoing fracking at the Braniewo S concession in Poland's northern Baltic Basin and a further well is planned.
The oil and gas production company, with operations in Europe and North America, said fluid and propant was successfully placed in three frack structures on multiple regions at the site, and oil was recovered at surface.
The company said that following geochemical analysis of the oil, it became clear that different oil was produced from the shales and the lower Cambrian sandstone regions.
San Leon said that Braniewo S is now regarded as having proven oil flow potential and now plans two options: either a new well on the crest of the Rogity Cambrian structure, which the company believes is a "sweet spot" for commercial oil production, or a new well south of Rogity-1 on a gravity defined structural high to target Silurian shale at the site.
The three-stage fracking and testing programme on site was performed as part of a farm-out agreement with Wisent Oil & Gas PLC to understand the potential for commercial oil production from the region.
San Leon noted that Wisent has now completed all of its obligations under this initial stage of the farm-out giving it the option to drill, stimulate and test a horizontal well to earn a 45% working interest in the Braniewo S concession.
The company added that to earn its 45% stake Wisent will drill and core the new well and fund certain work such as 3D seismic or additional drilling.
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.
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 shares were down 1.2% to 4.10 pence in early trading Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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