26th Nov 2013 12:05
LONDON (Alliance News) - San Leon Energy PLC Tuesday said it has completed fracking tests in Poland, with the well's behaviour exceeding expectations.
The oil and gas production company, with operations in Europe and North Africa, also said that its new majority-owned subsidiary Alpay Energi AS is now fully funded for its proposed work programme in Turkey.
San Leon's announcement came as Niche Group PLC, which has a 5% interest in Alpay, raised GBP1 million in equity funding through the issue of 100 million shares.
San Leon recently acquired a 75% interest in Alpay and stated its intention to increase oil and gas production from the Alpay assets by the end of the first quarter of 2014, and thereby achieving targeted gross monthly revenues of approximately USD3 million.
The company also said it has successfully executed vertical hydraulic fracture stimulations at the Lewino-1G2 well in Poland's northern Baltic Basin.
San Leon said that the site was re-fracked following a change of design and is now believed to have achieved all of the technical targets in upper-zone testing.
The company said that behaviour of the Polish well following the fracking is far exceeding expectations and that, following clean up of the site, a flow test will take place.
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.
3Legs Resources PLC Tuesday said it has agreed with ConocoPhillips to drill, stimulate and test a long lateral well in the Sasino shale horizon in Poland after detailed studies of the site.
San Leon shares were down 0.5% to 4.40 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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