San Leon Energy said Tuesday that it had made "significant progress" on its 100 percent-owned Durresi license in Albania, with interpretations of data received from seismic analysis identifying "several new large oil and gas prospects".
The company, whose shares are traded on London's Alternative Investment Market, reported that it has now received the first final processed volumes from its 324-square mile (840-square kilometer) 3D seismic survey in late 2011.
The survey was processed by Western Geophysical in London with a focus on detailed structural imaging, incorporating relative amplitude preservation for the detection of subtle stratigraphic prospects on the flanks of the complex structural setting offshore Albania. Continued processing of the new 3D, as well as existing 2D and 3D, seismic for the detection of stratigraphic traps is being performed in the company's Warsaw office in conjunction with continued detailed subsurface analysis.
Initial modeling of the seismic response from existing well data has proven the potential for using seismic amplitude analysis for the direct detection of hydrocarbons. This means significantly reduced exploration risk for prospects, said San Leon.
San Leon's Albania subsurface team continues to interpret the extensive 2D seismic database over the license and is now integrating the new 3D seismic interpretation. Initial results from the new interpretation have identified several new large oil and gas prospects across the many petroleum systems that exists across the Durresi License, said the company.
To date San Leon has identified numerous prospects and leads across the license with unrisked prospective recoverable resources of more than one billion barrels of oil equivalent across the proven petroleum systems. Six source rock intervals have been identified with several potential oil reservoirs expected in Mesozoic carbonates and flysch as well as numerous gas reservoirs in the shallower Tertiary clastic deposits. The San Leon subsurface team continues to identify prospects across the license.
The company has recently signed confidentiality agreements with several large exploration and production companies regarding farming into the license, and it reported Tuesday that it continues to receive unsolicited interest from other large E&P companies. As a result of which San Leon has opened the data room early to select companies and this has already recently been visited by several companies. Plans to drill the first of a two-well exploration program on the block are being made for late 2012/2013.
"We continue to make rapid progress on our Albania project. After being awarded the Durresi license in February 2011 we quickly shot our 3D program and, less than a year later, are identifying numerous high quality oil and gas prospects across the license," said Oisin Fanning, San Leon's chairman.
"The new 3D has revealed several large structural oil and gas prospects and is showing the significant stratigraphic potential that exists across the license. The possibility of using seismic amplitudes to significantly reduce exploration risk further demonstrates the high potential of offshore Albania.