San Leon Energy in strategic deal with Halliburton
18 March 2013 | 08:15am
stockmarketwire.com
StockMarketWire.com - San Leon Energy said it has entered a strategic relationship with Halliburton Company Germany to prove the unconventional gas potential of the SW Carboniferous Basin in Poland.
The memorandum of understanding was related to San Leon's Wschowa, Gora, and Rawicz concessions in Poland.
"San Leon will continue to serve as operator and manage the operations on the Concessions. All activities covered under this relationship will be limited to the Carboniferous and deeper sections. For clarity, the shallower Permian Rotliegendes and Main Dolomite sections are excluded from this relationship," it said.
Under the MOU, it is anticipated that Halliburton will perform and fund a Diagnostic Fracture Injection Test for the Siciny-2 well in Q2 2013.
Upon completion of the DFIT, Halliburton will have the option to perform and fund a minimum two-stage vertical hydraulic fracture in the Siciny-2 well with San Leon paying 50% of the wholesale proppant (fracturing fluid) cost to Halliburton.
This procedure is also planned for Q2 2013. San Leon will fund other third party costs on the well-site, such as security and waste disposal, in connection with the DFIT and fracture.
Subject to the execution of a further binding agreement, completion of the DFIT and hydraulic fracturing phase shall give Halliburton the option to earn up to a 25% working interest in the Carboniferous and deeper sections within the Concessions by fully funding two vertical exploration wells, including full technical evaluation with core, DFIT, and vertical hydraulic fracturing if technically warranted.
Halliburton will have 120 days following the hydraulic fracture on the Siciny-2 well to elect to drill the first exploration well to earn a 12.5% interest; and 120 days following the hydraulic facture on the first earning well to elect to drill the second earning well to earn an additional 12.5% interest, making a total of 25%.
Based upon the initial results of the Siciny-2 well drilled by San Leon in 2012, which encountered over 250m of gas saturated tight gas sands with over 200 BFC of gas per square mile, and vintage data, the Company estimates the net Prospect Resource potential of the Carboniferous play on its concession in Poland to be over 60 TCF of recoverable gas.
At 8:15am: [ LON:SLE] share price was -0.04p at 7.08p |
