With third Polish exploration well, San Leon uncovers new potential unconventional gas play
ogfj.com
February 14, 2012
By Oil & Gas Financial Journal Staff
editors
Europe and North Africa-focused San Leon Energy has completed the drilling and initial evaluation of another unconventional gas well in Poland and discovered a new potential unconventional gas play in the process.
The company recently completed the drilling, initial evaluation, and has cased its Siciny-2 well in the SW Carboniferous Basin of Poland, which comprises of 880,000 acres held 100% by San Leon. The well is located in the company’s 100% operated Gora Concession 70km to the southeast of the city of Zielona Gora.
The stratigraphic test well reached target depth of 3,520 meters after penetrating more than 1,000 meters of Carboniferous section. More than 265 meters 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 was also encountered below 3,200 meters in the well.
Initial well results for the Siciny-2 are a positive marker for commercialization noted FoxDavies in a February 14 note to investors.
“These results underline not only management’s understanding of the regional geology, but the prospectivity of the Polish gas shale play in general. While further testing will be required, the play is significantly derisked. 90p would be added to the fair value if our estimate of 3.5tcf is declared commercial,” the analysts said.
Evaluation and interpretation of the core and logs is expected to take 3-4 months in preparation for future production testing operations, noted San Leon.
Oisin Fanning, chairman of San Leon commented: “We are encouraged by the initial results of the Siciny-2 well showing four potential zones for unconventional gas production, including a newly identified interval. In total we encountered more than 500 meters of potential reservoir for further analysis and possible testing. The complex nature of the Carboniferous source rock, including natural fracturing, shows real promise for gas production.”
Completion
The Siciny-2 well comes on the heels of the Talisman Energy-operated Rogity-1 well drilled on the Braniewo S Concession in Poland where continuous gas shows were encountered over more than 1,600 feet (500 meters) of the Lower Silurian, Ordovician, and Middle Cambrian sections.
“The gas and liquids shows observed in the Rogity-1 and Siciny-2 would indicate that, in these areas at least, the geological risks are being systematically reduced, and there is permeability in the shale sequences. In the case of Siciny-2, the results are enhanced by the effective porosity and permeability of the fractured tight sandstone,” said the analysts.
Managing completion risk is now key. “The differences between the wells also highlights that the completion strategy will not be a “one size fits all” approach, necessitating management to study the results carefully prior to selecting an appropriate completion methodology for each region,” the analysts concluded. |
