Commencement of Seismic Survey (7994F)
May 03 2011 - 6:14AM
UK Regulatory
TIDMSLE
RNS Number : 7994F
San Leon Energy PLC
03 May 2011
SAN LEON ENERGY
("San Leon" or the "Company")
Commencement of Offshore Ireland Seismic Survey
San Leon and its partners are pleased to announce they have
commenced a 280 square kilometre 3D seismic survey on their North
Porcupine FEL 1/04 Licence ("Licence"), offshore Ireland.
PGS Exploration UK Limited ("PGS") has been contracted to carry
out the survey using the M/V Ramform Vanguard seismic vessel. The
3D seismic programme will evaluate a highly prospective structure
in the Licence, namely the C1 Lead, in preparation for a planned
2012 drilling programme. A best case in place resource of 1097
million barrels (MMBO) has been calculated for the C1 lead.
San Leon, through a wholly owned subsidiary, currently holds a
41.5% interest in the block and is the operator. Valhalla Oil and
Gas Limited ("Valhalla") holds 38.5% and Supernova Ireland
Resources B.V. ("Supernova") holds 20%. Through a farm-in agreement
with Valhalla, San Leon has agreed to pay 80% of the seismic
programme costs, rather than its 41.5% working interest
requirement. In exchange, San Leon will gain a further 32.5%
working interest in the licence from Valhalla. Following the survey
and government regulatory approval, San Leon will hold 74%,
Supernova will hold 20% and Valhalla will hold 6%.
As detailed on 18 September 2009, San Leon has a seismic
services agreement with PGS Ventures AS, who is providing a $50m
facility for seismic services.
Oisin Fanning, Executive Chairman of San Leon Energy,
commented:
"We are delighted that we have been able to mobilise a vessel
for this survey so quickly after the completion of the 840 square
kilometre survey offshore Albania three weeks ago. This is a
testament to San Leon's ability to capitalise on opportunities when
they arise.
The farm-in agreement with Valhalla allows us to move this asset
forward and seek new farm-in partners for the drilling of a well.
The Porcupine Connemara Oil field already offers a future
development opportunity within the Licence and we expect the C1
Lead to at least compliment Connemara. We believe the Atlantic
margin offshore Ireland is underexplored and is in the same
position as the North Sea was 40 years ago. This 3D programme will
allow us to map a very exciting one billion barrel oil target."
North Porcupine FEL 1/04 Licence, offshore Ireland.
The Porcupine Basin C1 Lead is located in Licence FEL 1/04 in
the northern main Porcupine Basin and targets a mapped turbidite
fan pinchout, considered to be analogous to the Buzzard Field in
the Morray Firth Basin offshore United Kingdom. Mounded
depositional forms are clearly visible on 2D seismic above the base
Cretaceous unconformity. Thick Lower Cretaceous shales overlie the
unconformity in wells located updip to the pinchout.
The hydrocarbon system at Lower Cretaceous level is proven by
the Burren oil discovery to the south and the capacity of Upper
Jurassic source rocks to generate large volumes of hydrocarbons is
established by the adjacent full to spill Upper Jurassic Connemara
Oil Field. A best case in place resource of 1097 million barrels
has been calculated for the C1 lead. The C1 Lead represents an
untested play type in the Porcupine Basin.
Licence FEL 1/04 also encompasses the discovered Connemara Field
and the H Prospect. A pilot development programme has been outlined
for the Connemara Field, targeting mid case in place resources of
67 MMBO, out of total field mid case in place resources of 151
MMBO.
The H Prospect consists of a tilted fault block located adjacent
to the Connemara Field. The full to spill H Prospect OIIP
calculation for the mapped Oxfordian reservoir, which is also the
main reservoir at Connemara, is 913 MMBO.
Discoveries at C1 and H could benefit from the existing
discovered hydrocarbons at Connemara.
03 May 2011
ENQUIRIES
San Leon Energy
plc Oisin Fanning, Executive Chairman +353 1291 6292
John Buggenhagen, Director
of Exploration
Macquarie Capital
(Europe) Limited +44 (0) 3037 2000
John Dwyer
Paul Connolly
Ben Colegrave
Fox-Davies Capital +44 (0) 203 463
Limited 5010
Phil Davies
David Porter
Arbuthnot Securities Nominated Adviser +44 (0) 20 7012
Limited 2000
Nick Tulloch
Ben Wells
College Hill Investment Relations Adviser +44 (0) 20 7457
2020
Nick Elwes
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 Director of Exploration for the San
Leon Energy
Group and based in San Leon's Warsaw office in Poland.
This information is provided by RNS
The company news service from the London Stock Exchange
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