San Leon Energy has been awarded two new exploration licenses in Spain. The two new licenses, Aquiles and Cronos, have been granted to Frontera Energy, San Leon's wholly owned subsidiary, by the Spanish Council of Ministers.
The Aquiles Licence, which is located in the Zaragoza and Navarro regions, covers 252,927 acres of the Zaragoza Basin. The Cronos Licence, which is situated in the Soria and Guadalajara regions, covers 239,596 acres in the Almazan Basin.
Both Licences contain unconventional Paleozoic resource potential where the Company is targeting Permian, Carboniferous, Silurian and Devonian shales. Historical well data and geochemical data from nearby outcrops show the potential for a world-class unconventional play. The Company also sees potential for conventional targets in shallower sections within the Licences.
The Licences have been granted for a period of six years and divided into three two-year stages. During Stage One, the Company will analyze existing seismic, well, and outcrop data and prepare for a seismic acquisition program. Seismic acquisition, processing and interpretation will be carried out in Stage Two, while Stage Three will require a commitment to drill one exploration well in each license.
These are the second and third licenses to be granted to San Leon Energy in Spain, following the grant of the Geminis and Libra licenses in the Cantabrian Basin. The company now holds 704,351 acres under license in Spain. There are a further six license applications pending with the authorities covering 1,523,757 acres across the Pyrenees and Solsona Basins.
Executive Chairman Oisin Fanning commented:
"The award of the Aquiles and Cronos Licences give our shareholders further exposure to the European-wide drive to unlock new unconventional hydrocarbon plays across the continent. Spain is regarded by the industry as a country with growing exploration potential. It is almost 100% dependent on imported gas and offers attractive fiscal terms. We already have two licenses in Spain and are confident we will be granted further licenses to enhance our position.
"I would also like to thank the Ministry and everyone involved in the grant of the Aquiles and Cronos licenses. We are very much looking forward to the challenge ahead and working with all the stakeholders to realize the areas' potential."
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