San Leon soars on well completion

Shares in San Leon Energy (SLE) gained nearly 10% of their value as the company announced it had successfully completed its second shale gas exploration well in Poland's Baltic Basin.

The Rogity-1 well, operated by Talisman Energy (TLM), had been drilled to a depth of 2,788 metres. Continuous gas shows were encountered over more than 500 metres of the Lower Silurian, Ordovician, and Middle Cambrian sections, with the strongest gas shows, along with indications of oil, encountered in the Lower Silurian interval. This interval is estimated to be over 100 metres thick.

"The richness of the gas shows is consistent with a wet gas system, confirming the company's regional model of the eastern side of the basin being in the oil window," said the oil and gas explorer.

San Leon also informed investors that an extensive open-hole logging programme had been performed to further evaluate the potential of the well.

Evaluation and interpretation of the core and logs is expected to take between three and four months in preparation for continued operations later in 2012, said the company.

"We are excited by the successful drilling and significant data gathering at the Rogity-1 well," stated chairman Oisin Fanning.

"Our initial results show the regional variability of the basin and have confirmed our model of a more liquids-rich system on the eastern edge of the basin. This is yet another milestone for San Leon and our successful partnership with Talisman Energy," he added.

For an understanding of what to look for when considering exposure to the sector, read: Analysing... Oil companies.