San Leon Energy, Dublin, (LSE: SLE) has reported an operational update on its activities in Poland, including information on its seismic evaluation.

Highlights are as follows:

  • Interpretation and prospect evaluation is ongoing in Szczecinek Block 106 (San leon 50%). San Leon and its partner, Gas Plus, are looking at further studies including a regional core study to evaluate the paleogeography and continued evaluation of the newly acquired 3D survey. Gas Plus, the operator of the licence, is likely to delay drilling until 2012 (from Q3 2011) due to internal planning considerations.
  • The Baltic Basic 2D seismic programme, over the Gdansk W, Braniewo and Szczawno Concessions, was completed in June 2011. A drilling rig has been booked for 1 August 2011, which will be used to drill three back-to-back wells.
  • Geofizyka Krakow completed 120 km of high quality 2D seismic over the company's 100% owned Nida Concession in May 2011. The data has been interpreted and confirmed three high potential structures on trend with the prolific Grobla and Plowice oil fields. A San Leon subsidiary, Vabush Energy, plans to drill two of these prospects commencing in July/August 2011.
  • Acoustic Geophysical has started the acquisition of 165 km2 of 3D seismic on the Company's 100% owned Nowa Sol Concession. The survey is currently c.20% complete and is seeking to delineate numerous prospects and leads along the southern Fore Sudetic Monocline of the Permian Basin. This survey is designed to support an upcoming drilling campaign in the Nowa Sol Concession which is currently planned to start in Q4 2011.
  • Work is ongoing in the Carboniferous shale play across the Wschowa, Gora, Winsko and Rawicz Concessions (San Leon 100%). The company continues to evaluate the existing core and well data in preparation for the first exploration well in the area which is planned for Q4 2011. Core analysis is being performed by TerraTek (Schlumberger) and the Polish Oil & Gas Institute in Krakow. Petrophysics on the existing well logs has been performed by NuTech.

"We highlight the Baltic Basin shale gas drilling program of three back-to-back wells and the carboniferous shale gas drilling (across the Wschowa, Gora, Winsko and Rawicz Concessions) later this year as activities that should be followed closely," the company notes. "Longer term we are enthusiastic about the company's Irish Atlantic margin exploration plays. We have a risked exploration value of 17p per share for these assets, which in our opinion is not fully reflected in the current share price. With 10 wells planned for 2011 and 2012, progress of the Tarfaya Oil Shale pilot project and potential farm-outs of the exploration assets there will be substantial news flow with potential un-risked upside of 100p per share.

"San Leon has demonstrated its management capabilities in progressing extensive work across its diversified portfolio of assets. We are confident that with its strong financial position and excellent commercial approach, the company will deliver shareholder value on a number of fronts. Poland and Morocco are likely to dominate the news flow over the next 12 months."