San Leon Update on Rawicz-12
San Leon Energy plc announced an update to the results of the Rawicz-12 well test in Poland.
Following the Company’s announcements dated 25 February and 6 March 2015, describing the highly positive preliminary well test results for Rawicz-12, Ryder Scott Company has finalised a Competent Persons Report (“CPR”) on the Rawicz Gas field for Palomar Natural Resources (“PNR”), the operator.
Ryder Scott has issued an estimate of the gross Proved plus Probable (2P) reserves for the Rawicz field of 50.3 billion cubic feet (Bcf) based upon a five-well development plan (including the Rawicz-12 well). Both San Leon and PNR expect to move reserves to Proved (1P) based upon a signed gas contract, which is currently under negotiation. All estimates produced by Ryder Scott comply with the 2007 Petroleum Resources Management System (PRMS) prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE).
PNR, together with the Company, is currently in the advanced stages of the planning and design of several development scenarios focused on bringing gas online in early 2016. A development plan will be submitted to the Polish regulators, based on the CPR. The current development plan is based upon building a scalable central processing facility to handle the gas production from adjacent prospects on the Rawicz Concession, which PNR estimates to be in excess of 100 Bcf.
The Rawicz project is operated by Palomar Natural Resources with 65% equity, and San Leon has no up-front drilling costs for its 35% equity share of the first two wells.
Oisin Fanning, San Leon Energy Executive Chairman, commented, “We are quickly moving forward with the development of the Rawicz gas field, and the confirmation of reserves from the CPR is a very positive step. San Leon and PNR are focused on first production and expanding our development using modern drilling and completion technology to unlock the significant remaining reserves in this under-explored basin, where some of the best gas prices in Europe can be found.”
John Buggenhagen Palomar Natural Resources CEO commented, “This is an exciting time for Palomar and San Leon, and for Poland - the Rawicz field development is the beginning of a larger exploration and production business for conventional gas in Poland.
"We have already mapped several other large, undrilled structures on our 3D seismic database at Rawicz and across our broader acreage position, that bring significant upside potential to the area and justify a larger, fast-paced development plan. Based upon our current prospect portfolio and the current fiscal regime in Poland, we see the potential for a highly profitable, sustainable E&P business in Poland for the long term. Rawicz is the first step in realizing this potential.”
