San Leon buoyed by positive drilling results

Four potential zones for gas production have been discovered in San Leon Energy's (SLE) Siciny-2 well.

The well is located in the company's 100%-operated Gora Concession in the SW Carboniferous Basin of Poland. The Carboniferous is known to be the source rock for the significant gas production in the overlying Permian Rotliegendes formation in Poland.

Valuable drilling data was obtained in drilling the complex structure of the Carboniferous section, allowing the company to reduce the time and cost of drilling future wells.

More than 265 metres of continuous core were collected across three prospective intervals identified in the Siciny-1 well. A previously unseen fourth potential Carboniferous shale section and a fractured tight gas sandstone were also encountered below 3,200 metres in the well.

During drilling, continuous gas shows were encountered across the four prospective shale intervals as well as through the tight sandstone interval.

"In total we encountered more than 500 metres of potential reservoir for further analysis and possible testing," said chairman Oisin Fanning. "The complex nature of the Carboniferous source rock, including natural fracturing, shows real promise for gas production."

Analysis and interpretation of the core and logs is expected to take about three to four months in preparation for future production testing operations.

Broker FoxDavies had a 'buy' recommendation on the stock. "With the flurry of drillbit success, the next six to 12 months should be exciting for San Leon Energy," it commented.

Shares in the company moved higher on the news.

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