Czasław-1 Stimulation and Test

San Leon Energy is pleased to announce an update on the DFIT, acid clean out, acid stimulation and short-term test of its Czasław-SL1 well in the Permian Basin of Poland.

Operations started on 23 April 2013, including the successful injection of 31 cubic meters of an acid based solution designed to clean up near wellbore damage and stimulate the natural fractures within the Main Dolomite reservoir. During the four days following the acid treatment the well returned 10 cubic meters of burnt acid with minor amounts of oil and gas. Gas was flowing at a steady rate of 10 cubic meters per hour.

This initial stimulation was designed to cleanout the near well bore reservoir interval and test the connectivity of the surrounding natural fracture systems. Based upon the results of the DFIT and the initial test results the reservoir in the well shows limited fracture connectivity. Propant was not used in this initial limited stimulation. Following the clean-up and short term test, the well has been shut-in for a seven day build-up-test to further evaluate the potential reservoir properties of the Main Dolomite and better understand the effectiveness of this initial stimulation. The Company will take the results of the build-up test and determine if a larger, slick-water frack with propant is warranted.

Executive Chairman, Oisin Fanning commented:
“Analysis of the results is focused on the reservoir connectivity at Czasław-SL1 and determining if a larger frack with propant will unlock the unconventional resource potential of the Main Dolomite at this location. The recent recovery of hydrocarbons and build-up of pressure in the Czasław-SL1 well is encouraging and the Company plans to continue to evaluate the potential of the play including additional stimulation of the existing well and the drilling of future exploration wells.”

Czaslaw SL – 1 Well

The Czasław-SL1 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.

For further information contact:

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

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

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

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

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

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


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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