19th Aug 2009 07:00
San Leon Energy Plc
("San Leon" or the "Company")
Gas Production Update
Commercial delivery of production gas from Nichols #1 Well.
Production at 1.3mmcf per day
3 more wells to be drilled on field
San Leon Energy is pleased to advise that it commenced commercial delivery of the gas production from its first well in Palo Pinto County, Texas. As a follow up of the discovery in the Nichols # 1 well, notified on the 6th of July 2009, the company can now confirm that the gas pipeline has been completed and a commercial agreement is in place to sell the gas from the 17th of August. A 2.3 kilometre pipeline has been installed which will also accommodate the output from three other well sites to be drilled in the vicinity this autumn.
Oisín fanning, Chairman of San Leon commented
"From the outset, our objective was to take advantage of low risk exploration in the USA to generate positive cash flow. I look forward to the expansion of this project and drilling three further wells which should further prove up reserves and the significant monetary value of this project.
We are also delighted to illustrate to the market and wider industry our ability to operate to plan. We have shown that we can run through the cycle of exploration, through to production and monetisation of one of our projects. This gives us confidence that we can repeat the process on the higher impact projects in our portfolio"
August 19th 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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