San Leon became ‘largest shale gas player in Europe by acreage’ in 2013

San Leon has published its final results for the year ended 31^st December 2013.

Oisin Fanning, Executive Chairman of San Leon, said:

“As a whole, 2013 has been a challenging year, not only for San Leon but for many small exploration and production companies. Nevertheless, despite tough market conditions San Leon has made considerable progress – we became the largest shale gas player in Europe by acreage, complemented by a sizeable conventional and tight gas portfolio, and the Company is now poised to move from exploration to production.

Our operational activity in 2013 was dominated by the highly encouraging Lewino-1G2 frac in the Baltic Basin of Poland. Resource play stimulation work in the Main Dolomite and tight Rotliegendes fields was also a priority for the Company, as well as the existing Rogity-1 well on the Braniewo S licence which had three hydraulic fracture treatments performed.

The proposed acquisition of a majority stake in Alpay Enerji (‘Alpay’), announced in September 2013, was aimed at cash generation from its assets. Following the completion of due diligence, and as a result of adverse currency shifts and well performance in the interim period, together with the failure to receive Turkish Government approval for the deal by the long stop date, the Board announced in early April 2014 that it had decided not to complete this deal in its proposed form.

The material decline in the desirability of the deal, together with the LoIs signed on near-term production assets in Poland (a source of cash flow) and the success of the Lewino-1G2 shale frac, meant that the funds originally earmarked for Turkey would be better spent elsewhere.

The future of shale gas development in Poland is set to attract a lot of attention in 2014, with both BNK and 3Legs/ConocoPhillips announcing the results of their multi-fracced horizontal wells. There also appears to be a broader acceptance of shale gas in the EU, as demonstrated by recent developments in Germany and Spain, and we look forward to being a significant part of the future of Europe’s unconventional gas industry.”

Original story can be accessed here.

Adapted from a press release by David Bizley

Read the article online at: https://www.worldpipelines.com/business-news/01072014/san_leon_became_largest_shale_gas_player_in_europe_by_acreage_in_2013/