San Leon Signs Morocco Onshore Rig Contract

Junior explorer San Leon Energy announced Thursday that it has signed a rig contract for the drilling of the El Aaiun-4 well on the Tarfaya license, onshore Morocco.

The rig contract has been signed with Entrepose Drilling for the Cabot 750 rig. The well is expected to spud during the second half of August 2015 and will take approximately 30 days to reach a total depth of around 6,560 feet below rotary table.

The reservoir target is Tertiary channel sandstones, with good reservoir properties expected. The surface location is approximately 8.5 miles from the El Marsa OCP phosphate processing plant near Foum el-Oued.

San Leon Executive Chairman Oisin Fanning commented in a company statement:

"As previously stated, one of our main priorities this year has been to commence drilling the onshore Tarfaya well, El Aaiun-4, and the rig contract with Entrepose Drilling brings us one step closer to this. We look forward to the near-term drilling of the El Aaiun-4 well, with its structural location up-dip of gas encountered in an older well, as well as its proximity to the gas market and other nearby similar channel targets for follow-on wells. We believe this well has significant potential and we shall update the market when the El Aaiun-4 spuds."

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