San Leon Touts Third Shale Exploration in Baltic Basin

San Leon announced the successful completion of its third shale gas exploration well in Poland's Baltic Basin. The Talisman Energy operated Szymkowo-1 well, on the Szczawno Concession in Poland, has been drilled to a depth of 14,931 feet (4,551 meters). During drilling, continuous gas shows were encountered over more than 1,969 feet (600 meters) of the lower Silurian and Ordovician shales. The gas shows consisted of C1-C3 and are consistent with a potentially wet gas system. The strongest gas shows were encountered in the Lower Silurian and Ordovician interval, which is estimated to be over 328 feet (100 meters) thick combined. Several intervals had significant gas shows which the Company believes are related to natural fracturing and possible over-pressure.

Continuous core of 1,033 feet (315 meters) were taken in the well to evaluate the rock properties of the Lower Silurian, and Ordovician intervals. In addition, an extensive open-hole logging program was performed to further evaluate the potential of the well. Evaluation and interpretation of the core and logs is expected to take up to six months in preparation for continued operations in 2013. The well was completed and cased for future operations which could include pressure testing of the formations (DFIT test) as well as possible fracking across several intervals.

This completes the first three vertical well program of the Talisman Energy farm-in. The Company expects Talisman to drill and test its first horizontal well in 1Q/2Q 2013 as a continuation of Talisman's commitment. Talisman Energy as operator, drilled 35,876 feet (10,935 meters) on three wells, Lewino 1G2, Rogity-1 and Szymkowo-1, and have taken ~900 meters of shale cores and operated for 345 days without lost time accident.

Oisin Fanning, Chairman of San Leon commented: "We are excited by the successful drilling and significant data gathering at the Szymkowo-1 well. The results continue to show the regional variability of the basin and are proof that the deeper parts of the basin are gas charged. This is yet another milestone for San Leon and our successful partnership with Talisman Energy as we plan to move forward towards the next stage of our cooperation including horizontal drilling and potential testing in 2013. Our systematic approach towards evaluating our geographically and geologically diverse unconventional gas acreage in Poland continues to pay off."


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