Yesterday’s RNS from San Leon was at first glance terrific news – and still is some extent. The style of the RNS release has more caution than wayward abandon seen by some AIM listed players. And that’s not a bad thing.
But lets be clear here – finding oil was the objective. They have done that and it bodes well for future drills. How the commercial story shapes up from here will rest upon flow tests and recovery techniques.
But for once – SLE have found oil and not the usual gas which the market seems bored by.
The company is making great progress in 2012 – it’s about time the sp followed suit.
30 August 2012, San Leon Energy Plc
Lelechow-SL1 finds oil
San Leon is pleased to announce that it has found oil and has completed the drilling of the Lelechow-SL1 well, the first of a two well exploration programme, on the Company’s Nowa Sol Concession targeting the Main Dolomite trend in the Southern Permian Basin insouthwest Poland (San Leon 100%). The well was drilled to a depth of 1,167 meters TVD.
Initial evaluation of the results from core and wireline logging results indicate the primary target in the Zechstein Main Dolomite is highly fractured and contains moveable oil.
Oil was recovered to the surface during initial clean out of the well.
Final completion of the well will incorporate an electrical submersible pump to continue to clean out the well and maximize oil flow rates during production.
The Company expects to resume testing of the well in the next few weeks pending final completion of drilling operations. Well completion is being designed for near-term commercial production from the well.
The Company is now preparing to move the rig to begin drilling the Czaslaw-SL1 well, the second well in the Nowa Sol Concession, which will also test the Main Dolomite.
Executive Chairman, Oisin Fanning commented:
“It is very encouraging to be able to report oil in our first well on the Main Dolomite trend in Poland that resulted from our own 3D seismic survey and interpretation on the Nowa Sol Concession. We will only know the oil production potential and recovery rates once the well is completed, cleaned up and tested but are excited because the fractured nature of the Main Dolomite offers significant upside in the play. The Company is now preparing to move the rig to begin drilling Czaslaw-SL1 well, our second well in the Main Dolomite trend.”