Polish shale-gas potential at two San Leon wells
London-listed San Leon Energy is riding high on positive exploration results from two of its Polish shale-gas wells in as many days
The Siciny-2 well, drilled at the company’s 100% owned Gora concession, in the southwest Carboniferous basin, identified continuous gas shows across four shale intervals and a tight-sandstone interval. The well was drilled to a total depth of 3,520 metres.
San Leon said that evaluating data gathered at the well would take three to four months, at which time it could decide to carry out pressure testing of the most promising zones, as well as vertical fracture stimulation and production testing. Markets welcomed the news, sending the company’s shares as much as 8% higher, from £0.1225 ($0.19) to £0.1325 in early trading following the 14 February announcement.
“We’re 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 metres of potential reservoir for further analysis and possible testing,” company chairman Oisin Fanning said.
He added: “The complex nature of the Carboniferous source rock, including natural fracturing, shows real promise for gas production.”
Early exploration efforts in Poland have been very successful in identifying unconventional-gas deposits. But proving those deposits can be produced commercially remains challenging. To date, initial well tests carried out across the country have not lived up to expectations.
The Siciny-2 announcement came just a day after San Leon announced positive exploration results at the Rogity-1 well, also in Poland, and also operated by Talisman Energy. The well was drilled at the Braniewo S licence, in the eastern section of the Baltic basin and hit more than 500 metres of continuous gas shows, as well as wet gas and oil. The company said that the shows discovered confirmed that the eastern edge of the Baltic basin was liquids-rich.
Rogity-1 has been cased and, as with the Siciny-2 well, the company expects core and log evaluations to take three to four months. At that point, San Leon will decide whether or not to proceed with production testing.
Talisman and San Leon now plan to spud a first well on the Szczawno licence, also in the Baltic basin. San Leon said the pair also plans to return to the Braniewo S licence to drill a long offset horizontal well, where it plans to carry out a multi-stage hydraulic fracturing operation.