San Leon Announce Interim Results for the six months ended 30 June 2014
San Leon Energy Plc, the AIM listed company focused on oil and gas exploration in Europe and North Africa today announces its interim results for the six months ended 30 June 2014.
Most successful vertical shale frac in Europe to date on the Lewino-1G2 well, and consequent planning of a horizontal multi-frac well and partnering discussions.
Rogity-1, in the oil-prone part of the Baltic Basin, confirms oil recovery from the shales as well as the tight sandstone. A follow-on well is planned.
Considerable interest in the Rawicz conventional field, and the Siekierki tight gas field, resulting after the reporting period in a firm farm-in by Palomar Natural Resources (“Palomar”); $20 million paid up-front to the Company, and a 5-well work programme without immediate cost to San Leon.
Planning a three-well shallow drilling programme in Karpaty and the Permian Basin has resulted in the first well spudding after the reporting period in late September.
Active farm-out discussions during the reporting period continue to bear fruit, including final negotiations and planning of a new-drill well in Torzym and fraccing of the existing Sosna-1 well, which are ongoing.
Core sampling and bench test retorting of shale oil took place in the reporting period, with results announced just after the reporting period. Positive results and a new technology partnership with Chevron Lummus Global to upgrade the shale oil to synthetic crude, show the great strides made on this highly material asset.
Technical planning for the Genel Energy PLC-operated Sidi Moussa SM-1 well completed during the reporting period. The well is currently being drilled and is targeting an estimated recoverable 300 MMboe.
Subsurface analysis of our Tarfaya onshore block has resulted in, post reporting period, the acquisition of Longreach’s interest, increasing San Leon’s interest to 75%.
Our Net Profit Interest (NPI) on the offshore Barryroe field is likely to be readily saleable once the Operator, Providence Resources PLC, has farmed the field out.
Decision taken not to complete the Alpay Enerji transaction in Turkey, with the escrow consideration being returned to the Company.
Revenue for the six months to 30 June 2014 was €0.40m compared with €0.54m for the six months to 30 June 2013. Discontinued operations accounted for €0.40m of revenue (2013 H1: €0.54m).
Loss before tax of €6.80m for the six months to 30 June 2014, compared with profit before tax of €1.11m in the six months to 30 June 2013.
Cash and cash equivalents including restricted cash at 30 June 2014 amounted to €20.9m (30 June 2013: €12.8m and 31 December 2013: €17.7m).
Oisin Fanning, Chairman of San Leon, commented:
“The pipeline of well activity over the coming months (eight wells already confirmed and a further three anticipated in Poland, with one well already drilling offshore Morocco), including the targeting of near-term production, puts the Company in a strong portfolio position. We look forward to updating our shareholders on well results, and to the outcome of our continuing transaction activity including the highly promising Gdansk W shale gas asset.”
Joel Price, who has reviewed this update, has 20 years’ experience in the oil & gas industry and is a member of the Society of Petroleum Engineers. He holds a BA in Natural Sciences from Cambridge University, an MEng from Heriot-Watt University, and an MBA from Durham University. Joel is Chief Operating Officer for San Leon Energy and is based in San Leon’s London office.
Source: San Leon Energy Plc