New well to be drilled based on success of Rogity1

10 March 2014

San Leon Energy Plc

("San Leon" or the "Company")

New well to be drilled based upon success of Rogity-1

Highlights

• Rogity-2 well planning underway for the next well under the Wisent Farmout Agreement

• High quality oil recovered from Silurian/Ordovician shales after frac

• Cambrian sandstones proven to be a viable oil reservoir

San Leon has completed the hydraulic fracture stimulation programme and testing of the Rogity-1 well on the Braniewo S Concession (the "Concession") in Poland's northern Baltic Basin. This three-stage frac and testing programme (the "Programme") at Rogity-1 was performed as part of the farm-out agreement ("FOA") with Wisent Oil & Gas plc ("Wisent"), under which Wisent was required to design, perform, and fund the costs of the Programme including testing each zone. The objective of the Programme was to understand the fraccability and potential for commercial oil production from the middle Cambrian sandstone, the Ordovician shale/carbonate, and the Lower Silurian shales. United Oil Field Services ("UOS") was contracted to perform the Programme. Wisent has completed all of its obligations under this initial stage of the FOA giving it the option to drill, stimulate and test a horizontal well to earn a 45% working interest in the Braniewo S Concession.

Frac 1 was performed in the middle Cambrian sandstone interval between 2,760-2,765 meters using 3,500 bbls of frac fluid and 100,000 pounds of 40/70 mesh sand. All fluid and propant was successfully placed into the formation. As previously announced, oil and formation water were recovered on test suggesting the Rogity-1 Cambrian sandstone interval is around the oil-water contact on the Rogity structure.

Frac 2 was performed in the Ordovician marls and shales interval between 2,700-2,720 meters pumping over 6,000 barrels of frac fluid and over 145,000 pounds of 40/70 and 30/50 mesh sand. All fluid and propant was successfully placed into the formation.

Frac 3 was performed in the Lower Silurian Llandovery shale interval between 2,630-2,655 meters pumping over 4,000 barrels of frac fluid and over 100,000 pounds of 40/70 and 30/50 mesh sand. All fluid and propant was successfully placed into the formation.

Following completion of the second and third stimulations, frac fluid was cleaned up through the completion. The flowback was performed commingled between all three frac stages. Once again oil was recovered at surface, and detailed geochemical analysis was undertaken in order to understand the layer contributions. Once the final geochemical results were interpreted it became clear that different oil was produced from the shales and the Cambrian sandstone - in other words, mobile oil was recovered from the shales as well as the Cambrian sandstone. The oil has a gravity of around 39 degress API, with no sulphur.

San Leon and its partners continue to evaluate the potential for unconventional oil production from the Lower Silurian in the Braniewo S concession having only tested one 20m interval. Any appraisal of a potential Cambrian oil accumulation will also be designed to test the potential of the lower Silurian and Ordovician.

Forward Plan

Braniewo S is now regarded by San Leon and Wisent as having proven oil flow potential from both its Cambrian sandstone and from its overlying shale. These highly-encouraging results have defined the second phase in the appraisal of the Concession. There are currently two options for the next well, and work is underway to select the optimal choice.

Option 1 - a new well could be drilled on the crest of the Rogity Cambrian structure. San Leon has mapped a large Cambrian structure at the Rogity-1 well, which the Company believes is a sweet spot for commercial oil production via fractures from the middle Cambrian sandstones. The Rogity-1 well was drilled down-dip of the structural high where the Silurian-Ordovician interval was interpreted to be the thickest. A future appraisal well is being designed to test the crest of the structure and the improvement in reservoir quality deeper in the middle Cambrian sandstones.

Option 2 - regional geology and the results of the Rogity-1 well indicate that the Silurian shale has still higher organic content further south in the concession. A new well could therefore be drilled some distance to the south of Rogity-1 on a gravity-defined structural high. The primary target would be Silurian shale, while Ordovician and Cambrian would also be evaluated.

The remainder of Wisent's funding and execution obligations under the FOA (drilling a horizontal well with multiple fracs) to earn its 45% equity stake in the Concession, will be amended to:

1. Drilling and coring a vertical well in one of the two areas described above. Perform such fracs and testing as is necessary to evaluate the Silurian and Ordovician shales, and the Cambrian sandstone.

2. Further work, such as 3D seismic or additional drilling, will be funded by Wisent such that the total spend provided by Wisent is equivalent to that of the horizontal multi-fracced well originally envisaged in the FOA.

Follow-on well activity will now be planned between partners, and will be subject to approval from the Polish authorities.

Oisin Fanning, San Leon Executive Chairman, commented:

"Proving the presence of mobile oil in the Cambrian tight sandstone and overlying shales at Rogity-1 is a major step forward. We look forward to drilling the next exploration well and shall promptly evaluate which of the two targets to drill first in order to prove up a commercial oil accumulation."

Qualified person

Joel Price, who has reviewed this update, has 20 years' experience in the oil & gas industry and is a member of the Society of Petroleum Engineers. He holds a BA in Natural Sciences from Cambridge University, an MEng from Heriot-Watt University, and an MBA from Durham University. Joel is Chief Operating Officer for San Leon Energy and is based in San Leon's London office.

For further information contact:

San Leon Energy plc +353 1291 6292Oisin Fanning, Executive ChairmanfinnCap Ltd+44 (0) 20 7220 0500Corporate FinanceMatt GoodeChristopher Raggett

Corporate BrokingElizabeth JohnsonJoanna Weaving

Fox-Davies Capital Limited+44 (0) 20 3463 5000Daniel Fox-DaviesOliver StansfieldJonathan Evans 

Macquarie Capital (Europe) Limited+44 (0) 20 3037 2000Steve BaldwinNicholas Harland

FirstEnergy Capital LLP+44 (0) 20 7448 0200Hugh R. SandersonJonathan WrightDavid van Erp

Westhouse Securities LtdNominated Adviser+44 (0) 20 7601 6100Richard JohnsonAntonio Bossi

Vigo CommunicationsFinancial Public Relations+44 (0) 20 7016 9573Patrick d'AnconaChris McMahon

Instinctif PartnersInvestor Relations Adviser+44 (0) 20 7457 2020David SimonsonCatherine Wickman

Plunkett Public RelationsSharon Plunkett+353 (0) 1 280 7873