Tarfaya Oil Shale Update (4968V)
January 13 2012 - 2:00AM
UK Regulatory
TIDMSLE
RNS Number : 4968V
San Leon Energy PLC
13 January 2012
13 January 2012
San Leon Energy Plc
("San Leon" or the "Company")
Tarfaya Oil Shale Update - Hydraulic Connectivity
Established
San Leon is pleased to announce that is has established
connectivity between its two test wells in its Tarfaya Oil Shale
project. Injection water has been observed in three wells,
including pilot Well A and Well B drilled by the Company as part of
the pilot project, and the pre-existing Star 12 core hole. Several
transmissivity and static formation pressure tests were performed
to identify the origin of the water which have confirmed
connectivity between the two pilot test wells which are 10 meters
apart. Operations have been temporarily suspended pending continued
technical analysis and forward operational planning.
Based on the test results, the Company has reached the following
conclusions:
-- Well A, Well B and Star 12 are hydraulically connected
through a permeable zone from 191.00 to 197.62 meters below ground
level (mbGL);
-- Star 12 provided, over a long period, a flow path from the
upper aquifer, feeding the permeable zone below 184.80 mbGL;
-- After cementation of the Star 12 well, the formation from
191.00 - 197.62 mbGL acted as a closed system with depletion
related to formation water production (via airlifts);
-- The water samples suggest that the water from the deep
permeable zone is similar to the shallow aquifer. The water
contains primarily sodium chloride (78-91% of dissolved solids by
weight), with small amounts of magnesium, calcium, potassium,
sulfate and nitrate.
-- Despite establishing hydaulic connection between the two
pilot wells, the Company has decided not to risk contaminating the
shallow water aquifer. Further analysis will be performed prior to
resuming operations either at the same location or at an
alternative site.
Based on the recent results the Company will now identify an
alternative drilling site away from existing wells to test the
extent of the play and the associated water acquifers.Future wells
will be cored and completed based upon the new information gained
during this phase of the pilot project. In parallel, a hydrodynamic
study of the basin is being contemplated to understand the regional
aquifer systems in relation to the potential oil shale pay
zones.
A permanent presence has been maintained at the site to ensure
the security of the equipment and facilities installed to date.
The Company has been contacted by several companies with oil
shale experience regarding partnering with San Leon on the Tarfaya
Oil Shale project. A data-room is now open that includes
geotechnical information as well as engineering designs for the
pilot plant. The Company is in active discussions with interested
parties.
Oisin Fanning, Chairman of San Leon, commented:
"We are delighted to have confirmed natural connectivity between
the wells. However, we have decided that San Leon should not be
taking any environmental risk whilst we aim to continue to prove up
the in situ extraction concept of the Tarfaya oil shale resources
and to rapidly progress toward operations of the processing pilot
plant designed and built for the project. Several firms have
expressed a desire to partner with us in the project, confirming
our belief that the Tarfaya oil shale resource development
represents a significant opportunity as an unconventional
play."
For further information contact:
San Leon Energy Plc Tel: + 353 1291 6292
Oisin Fanning, Executive Chairman
Dr John Buggenhagen, Exploration
Director
Macquarie Capital (Europe) Limited Tel: +44 (0) 20 3037
2000
Paul Connolly
John Dwyer
Arbuthnot Securities Tel: +44 (0) 20 7012
Antonio Bossi 2000
Richard Johnson
College Hill Associates Tel: +44 (0) 20 7457
2020
Nick Elwes
www.sanleonenergy.com
Qualified person
John Buggenhagen, who has reviewed this update, 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
END
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