TIDMSLE
RNS Number : 1078G
San Leon Energy PLC
26 June 2012
26 June 2012
San Leon Energy Plc
("San Leon" or the "Company")
Proving the Huge Upside Potential of the Carboniferous in
Poland:
Siciny-2 Carboniferous Evaluation Results and Forward Plans -
With Significant Gas in Place
San Leon Energy is pleased to announce the results of its
technical evaluation of the Siciny-2 well in the SW Carboniferous
Basin of Poland. Following the announcement on February 14, 2012
regarding the Company's successful drilling of the Siciny-2 well to
3,520 meters, the initial evaluation phase of the core and
petrophysical data gathered is now complete. More than 265 meters
of continuous core were collected across three prospective
intervals in the Siciny-2 well which were previously identified in
the Siciny-IG1 well (drilled by the Polish Geological Institute in
1972). Siciny-2 had continuous gas shows throughout the
Carboniferous interval. Several previously undrilled high potential
Carboniferous fractured, tight gas sandstone intervals were
encountered below 2,870 meters and will be the focus of initial
testing of the well. The well was cased for future operations
including pressure testing of the prospective zones, a dynamic
formation integrity test (DFIT) and possible vertical fracture
stimulation and production testing across several intervals.
Based on the results of petrophysical analysis of the
geophysical logs and tight rock analysis of the core performed
between January and May 2012, San Leon has been able to evaluate
quality of five prospective zones for unconventional gas
accumulations.
The Company, through its subsidiary NovaSeis, is currently
acquiring a 220 km(2) 3D seismic survey over the Siciny-2 well
location and surrounding prospective area. The survey is expected
to take two months to acquire and should be finished by August.
Zone 1 (3,200-3,520 meters): Carboniferous Tight Sandstone ("A"
Sand)
From 3,200 to 3,520 meters (TD) an extremely thick (>320
meters), highly gas saturated sandstone interval was encountered.
Over the 320 meter gross interval more than 151 meters have been
identified as potential net pay. Petrophysical analysis of the
calculated pay indicates porosities between 3-7% with an average
effective porosity of 3.86%, and permeability ranging between
20-200 nD with an average of more than 100 nD. The "A" sandstone
has low water saturation with an average of 74% free gas
saturation. The interval's mineralogical composition suggests that
it is well suited for hydraulic fracturing with average clay
content less than 33%. Petrophysical analysis indicates that the
sandstone contains potentially extensive natural fracturing which
will further enhance the existing porosity and permeability of the
interval. The Company believes the primary source of the gas is
from deeper Carboniferous shales with some input for organic matter
in the interval. Calculated free gas in place for the interval is
estimated to be 163 BCF/sq. mi. with total gas estimated at 193
BCF/sq. mi. Based upon gas samples and mud log shows the gas is
estimated to be primarily dry gas.
The Company is planning to perform pressure tests, a DFIT, along
with possible vertical fracture stimulation and production testing
across the lower 100 meters of this interval in Q3/Q4 of 2012.
Zone 2 (2,870-3,110m): Carboniferous Tight Sandstone ("B"
Sand)
Between 2,870 and 3,110 meters a thick tight gas saturated
interval was encountered in sandstones and interbedded shales. Over
the 240 meter gross interval more than 32 meters have been
identified as net pay with potential net pay of 188 meters.
Petrophysical analysis of the calculated pay indicates porosities
between 3-9% with an average effective porosity of 3.58% and
permeability ranging between 20-300 nD with an average of more than
115 nD. The "B" sandstone has low water saturation with an average
of 62% free gas saturation. The intervals' mineralogical
composition suggests that it is well suited for hydraulic
fracturing with average clay content less than 37%. Petrophysical
analysis indicates that the sandstone contains potentially
extensive natural fracturing which will further enhance the
existing porosity and permeability of the interval. The interval
does contain dispersed organic material with estimated average TOC
of 1.48-2.14% within the shales over the gross interval. The
Company believes the primary source of the gas is from within the
interval and potentially deeper Carboniferous shales. Calculated
free gas in place for the interval is estimated to be 64 BCF/sq.
mi. with a total 97 BCF/sq. mi. Based upon gas samples and mud log
shows the gas is estimated to be primarily dry gas.
Zones 3-5 - Upper Shale Gas Zones:
In addition to the two deeper tight gas intervals the well
encountered three potential prospective, highly fractured organic
rich shale intervals with a total gross thickness of 430 meters
between 2,065 and 2,610 meters. 250 meters of whole core was taken
over three of the intervals. Tight Rock Analysis on the core,
integrated with petrophysical analysis of the logs indicates total
porosity of the intervals range between 1.4-8.5%, and average
permeability between 80-100 nD. TOC values range between 1.2 to
3.25%, and maturity (Ro) values between 1.2-1.5. Analysis of the
TOC data suggests the shales are gas prone Type III source rocks
that are in the dry gas window. Gas saturations range between
30-80%. Based upon gas samples and mud log shows the gas is
primarily methane with a small fraction of ethane and propane.
Given the highly fractured nature of the shales, the Company is
looking at additional analysis of the core and petrophysics to
fully understand the reservoir properties, particularly the
porosity and permeability, and long term production potential of
these zones. Future testing and potential fracing of these
intervals is pending testing of the deeper tight gas zones which
are believed to have significantly higher potential for commercial
production.
The following table contains summary of results of core and
integrated petrophysical analysis of the three potential shale gas
intervals in the Siciny-2 well:
Depth (m) Gross Total Permeability Silica TOC (%) Clay content
Thickness porosity (nD) (%) (%)
(m) (%)
---------- ----------- ---------- ------------- ----------- ------------- -------------
2,065 - 1.72 - 29 - 59 1.38 - 1.85
2,260 195 4.05 55 - 109 (avg. 44) (avg. 1.59) 25 - 66
(av. 83)
---------- ----------- ---------- ------------- ----------- ------------- -------------
2,295 - 1.50 - 1.21 - 1.6
2,400 105 8.10 100 28 - 67 (avg. 1.38) 35 - 66
---------- ----------- ---------- ------------- ----------- ------------- -------------
2,480 - 1.36 - 28 - 63 1.32 - 1.86
2,610 130 3.77 68 - 116 (avg. 47) (avg. 1.6) 45 - 54
(av. 89
)
---------- ----------- ---------- ------------- ----------- ------------- -------------
Oisin Fanning, Chairman of San Leon, commented:
"We are more than encouraged by the potential of the
Carboniferous to be a significant gas producer in Poland. The
initial results of the Siciny-2 well are very exciting and we plan
to move forward in testing several of the prospective intervals in
the well in the near future. This was the first modern well to test
the Carboniferous potential of the basin. It is a proven source
rock interval that has generated a lot of gas with significant
upside in thick tight sands in the basin. The Siciny-2 well has
proven that there is very real potential in the play. We plan flow
testing in 2012 with continued drilling in 2013 across our
extensive position in this play, including the new Concessions we
recently acquired as part of our joint venture with Hutton
Energy."
For further information contact:
San Leon Energy Plc Tel: + 353 1291 6292
Oisin Fanning, Executive Chairman
John Buggenhagen, Exploration
Director
Macquarie Capital (Europe) Limited Tel: +44 (0) 20 3037 2000
Paul Connolly
John Dwyer
Westhouse Securities Tel: +44 (0) 20 7601 6100
Richard Johnson
Antonio Bossi
College Hill Associates Tel: +44 (0) 20 7457 2020
Nick Elwes
Alexandra Roper
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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