San Leon has completed its work obligations and as a result of the positive results received from this work the Company has successfully negotiated with ONHYM the conversion of the Reconnaissance License into a full Exploration License which was signed on June 18 in Rabat and was approved for release by ONHYM on July 17.
San Leon Energy's high resolution aeromagnetic survey, which was integrated with surface and subsurface data, indicated some structures; including a 60 km long anticline with the potential for hydrocarbon reserves.
The Agreement is valid for up to 8 years and covers a work program, which includes seismic acquisition and geological studies within the first thirty months.
San Leon operates the Zag Exploration License with a 37.5% stake, partner Island Oil and Gas Plc has a 15% interest, and ONHYM has 25%. The other partner is Longreach Oil and Gas with 22.5%. ONHYM's 25% interest is free carried until a discovery is made and the development phase is agreed to have commenced.
Philip Thompson, CEO of San Leon commented, "We are delighted to have successfully completed the process with ONHYM and progress the Zag project to a full exploration license. We are committed to Morocco due to its highly beneficial commercial regime, as well as the indications that it is a highly prospective petroleum province.
"Our Aeromagnetic surveys demonstrate that Zag is a project of considerable promise. We look forward to working together with our partners to discover the real potential of this license."
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