20th Jul 2009 07:00
San Leon Energy Plc
("San Leon" or the "Company")
Award of full Exploration licence in Zag, Morocco
San Leon advances Zag to full Exploration Licence status
Initial work on Zag License completed
Aeromagnetic survey has illustrated promising structures
60km anticline shows potential for hydrocarbon reserves
New RWE farm-in to Moroccan licence adjacent to San Leon's
San Leon is pleased to announce that it has completed its work obligations and as a result of the positive results received from this work the Company has successfully negotiated with ONHYM the conversion of the Reconnaissance Licence into a full Exploration Licence which was signed on the 18th of June in Rabat and was approved for release by ONHYM on the 17th July.
San Leon Energy's high resolution aeromagnetic survey, which was integrated with surface and subsurface data, indicated some structures; including a 60 km long anticline with the potential for hydrocarbon reserves.
The Agreement is valid for up to 8 years and covers a work programme which includes seismic acquisition and geological studies within the first thirty months.
San Leon operates the Zag Exploration License with a 37.5% stake, partner Island Oil and Gas Plc has a 15% interest, and ONHYM has 25%. The other partner is Longreach Oil and Gas with 22.5%. ONHYM's 25% interest is free carried until a discovery is made and the development phase is agreed to have commenced.
Philip Thompson, CEO of San Leon commented
"We are delighted to have successfully completed the process with ONHYM and progress the Zag project to a full exploration licence. We are committed to Morocco due to its highly beneficial commercial regime, as well as the indications that it is a highly prospective petroleum province.
Our Aeromagnetic surveys demonstrate that Zag is a project of considerable promise. We look forward to working together with our partners to discover the real potential of this licence."
20 July 2009
For further information contact:
San Leon Energy Plc Tel: + 353 1291 6292
Oisin Fanning, Chairman
Philip Thompson, Chief Executive Officer
Arbuthnot Securities Tel: +44 (0) 20 7012 2000
Nick TullochAndrew Fairclough
Fox Davis Capital Tel: +44 (0) 20 7936 5230
Jason Bahnsen
Oliver Stanfield
College Hill Associates Tel: +44 (0) 207 457 2020
Paddy Blewer
Nick Elwes
Qualified person
Philip Thompson has over twenty five years experience in the oil & gas industry. He has an M.Sc. in Geophysics from Southern Methodist University and a B.Sc. in Geophysics from Texas A&M University.
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