JV with Talisman Energy
March 01 2010 - 2:01AM
UK Regulatory
TIDMSLE TIDMAN26
RNS Number : 8235H
San Leon Energy PLC
01 March 2010
San Leon Energy Plc
("San Leon" or the "Company")
Talisman Energy and San Leon Sign Joint Venture Agreement
San Leon Energy PLC ('San Leon' or 'The Company') is pleased to announce that
its decision to enter into the Baltic Gas Shale play in Poland has today
culminated in this exciting farm in announcement with Talisman Energy Inc.
("Talisman"). Talisman is a diversified, global, upstream oil & gas company,
based in Canada, currently piloting and developing a number of shale plays in
North America. Talisman has signed a farm in agreement with San Leon that covers
the Company's two existing Baltic Basin concessions (Braniewo & Gdansk W) and
also extends to a 3rd pending concession application in the Gdansk area.
Highlights:
· San Leon carried through seismic programme and potential 6 well programme
- an estimated investment of US$80 million
· Talisman will pay 60% of the seismic costs, remaining costs will be
covered through the PGS agreement
· Talisman has paid San Leon EUR1.5 million on signing the joint venture
agreement
· Talisman to drill one well across each of the three concessions
· Option to follow up with three further wells - should the data encourage
further development
· Talisman will be assigned a 60% interest in the concessions
· San Leon estimates potential of 4.0-6.0 TCF of recoverable natural gas
across these concessions
A Farmout has been signed between the San Leon Polish subsidiary Oculis
Investments Sp. z o.o. and Talisman Energy Inc. for the exploration of shale gas
in the Baltic Basin onshore Poland. Under the agreement Talisman has agreed to
pay 60% of the costs of a seismic programme and has made a cash payment of EUR1.5
million to San Leon. The remaining 40% will be conducted and paid for under the
2009 agreement between PGS and San Leon. Talisman will also drill one well
across each of Oculis's three concessions with the option to follow up with a
further three wells should the data encourage further development. Talisman will
be assigned a 60% interest in each concession, reducing to 30% if it doesn't
elect to drill the optional second well. This represents a potential estimated
investment of more than $80 million USD in the coming three years to prove a
potentially significant gas play in Poland.
Based upon San Leon's initial technical evaluation of the shale gas potential of
the Silurian and Ordovician rocks in the Baltic Basin the play has an estimated
potential of 4.0-6.0 TCF of recoverable natural gas across San Leon Energy's
acreage. Currently Oculis has two concessions, Braniewo and Gdansk West,
totalling more than 1,820 km2. Oculis has an additional concession application
pending which would add an additional 600 km2. Oculis selected its concessions
to explore a diverse range of depth and rock types based upon previous wells
drilled in the basin. The company believes its diverse position provides a high
probability of commercial success.
Oisín Fanning, Chairman of San Leon commented:
"This is a superb beginning and further justifies the decision to acquire Gold
Point Energy in 2009. This also fully justifies our decision to have a
significant presence in Poland under the leadership of Dr. John Buggenhagen in
Warsaw.
The potential here is enormous. San Leon is now fully carried, whilst retaining
a 40% interest, through a programme which has the potential to prove up a
significant gas play in Poland.
Talisman are a global oil and gas player with an excellent track record and
expertise in shale gas. This partnership is testament to our continuing efforts
to bring value to our shareholders and we look forward to working with Talisman
on this programme."
1 March 2010
For further information contact:
+--------------------------------------+-------------------------------+
| San Leon Energy Plc | Tel: + 353 1291 6292 |
+--------------------------------------+-------------------------------+
| Oisin Fanning, Chairman | |
+--------------------------------------+-------------------------------+
| Philip Thompson, Chief Executive | |
| Officer | |
+--------------------------------------+-------------------------------+
| | |
| www.sanleonenergy.com | |
| | |
+--------------------------------------+-------------------------------+
| Arbuthnot Securities (NOMAD and | Tel: +44 (0) 20 7012 2000 |
| Broker) | |
+--------------------------------------+-------------------------------+
| Nick Tulloch | |
+--------------------------------------+-------------------------------+
| Andrew Fairclough | |
+--------------------------------------+-------------------------------+
| | |
+--------------------------------------+-------------------------------+
| Fox-Davies Capital | Tel: +44 (0) 20 7936 5230 |
+--------------------------------------+-------------------------------+
| James Hehn | |
+--------------------------------------+-------------------------------+
| | |
+--------------------------------------+-------------------------------+
| College Hill | Tel: +44 (0) 207 457 2020 |
+--------------------------------------+-------------------------------+
| Nick Elwes | +44 (0)7831 851 855 |
+--------------------------------------+-------------------------------+
Qualified person
John Buggenhagen 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 Vice President
of Exploration for the San Leon Energy group.
Notes to Editors:
Talisman Energy Inc
Talisman Energy Inc. is a global, multi billion dollar diversified, upstream oil
and gas company, headquartered in Canada. Talisman's three main operating areas
are North America, the North Sea and Southeast Asia. The Company also has a
portfolio of international exploration opportunities. Talisman is committed to
conducting business safely, in a socially and environmentally responsible
manner, and is included in the Dow Jones Sustainability (North America) Index.
Talisman is listed on the Toronto and New York Stock Exchanges under the symbol
TLM.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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