RNS

RNS Number : 7577C
San Leon Energy PLC
19 April 2013

Czas aw-1 Stimulation and Test

San Leon Energy is pleased to announce that its planned stimulation and test of the Czas aw-1 well on the Company's Nowa Sol Concession in the Permian Basin of Poland will begin on April 22, 2013 with the mobilisation of coiled tubing, nitrogen lift equipment, and surface test equipment from Vechta, Germany. Recent measurements of the well have shown that the well is building pressure. After taking samples of the fluid in the wellbore the Company has recovered natural gas (including C1-C8) and light oil. Schlumberger has been contracted to complete this phase of the project. The Company estimates the following timeline:

  • 25 April 2013 - acid wash and clean out of the well
  • 26-30 April 2013 - acid squeeze into the Main Dolomite reservoir; after soaking lift fluids in the well bore using nitrogen, followed by 3 day flow test up to 400 bbls of oil
  • 1 May 2013 - shut-in the well for 5 day build-up with downhole gauges
  • 6 May 2013 - decision on a long term test and oil production, based upon results of the acid stimulation and test

The Czas aw SL-1 well reached a total depth of 1,558 meters Measured Depth (1,229 meters TVD). The well penetrated 43 meters of the targeted Permian Main Dolomite reservoir. Petrophysical analysis shows moderate fracturing of the Main Dolomite within an estimated 29 meters of naturally fractured reservoir. Live oil shows were present on 90% of the core plug and detailed petrophysical and core analysis indicates moveable light oil in the Main Dolomite reservoir. The entire Main Dolomite interval shows high fluorescence suggesting both moveable and residual oil. Integrated petrophysical and rock-mechanical analyses suggest the well is a good candidate for artificial stimulation to enhance the natural fractures in the reservoir. There were no indications of water encountered during drilling. The well is the first well on the Czas aw structure, with room for additional vertical and/or horizontal wells. Several similar structures have been identified in the Company's Nowa Sol 3D seismic survey which covers less than 15% of the Nowa Sol Concession area.

Executive Chairman, Oisin Fanning commented:

"The recent recovery of hydrocarbons and build-up of pressure in the Czas aw-1 well is very exciting. We have been studying the Main Dolomite extensively over the past months with experts both in Europe and North America. We are now ready to stimulate and test the well and with success immediately move to production. There is a huge amount of oil in place in the Main Dolomite and we are committed to unlocking both the conventional and unconventional potential of the petroleum system."   

For further information contact:

San Leon Energy Plc
Oisin Fanning, Executive Chairman
John Buggenhagen, Exploration Director
Tel: +353 1291 6292 

Macquarie Capital (Europe) Limited
Tel: +44 (0) 20 3037 2000
John Dwyer

Fox Davies Capital
Daniel Fox-Davies
Richard Hail
Tel: +44 (0) 20 3463 5000 

FirstEnergy Capital LLP
Hugh R. Sanderson
David van Erp
Tel: +44 (0) 20 7448 0200 

Westhouse Securities (Nominated Advisor)
Richard Johnson
Antonio Bossi
Tel: +44 (0) 20 7601 6100

College Hill Associates
Tel: +44 (0) 20 7457 2020
David Simonson
Rupert Trefgarne
Alexandra Roper

www.sanleonenergy.com

Qualified person

John Buggenhagen, who has reviewed this update, has over 15 years experience in the oil & gas industry. He has a Ph.D. and M.Sc. in Geophysics from the University of Wyoming and a B.Sc. in Geophysics from the University of Arizona. He is currently the Director of Exploration for the San Leon Energy Group and based in San Leon's Warsaw office in Poland.

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