San Leon makes promising gas discovery in south-western Poland

Oil and gas pump
Source: DollarPhotoClub

London-listed San Leon Energy – one of the few foreign companies still searching for shale gas in Poland – has announced a promising find, albeit of conventional gas. The company announced highly positive well test results for Rawicz-12, which San Leon expects will form its first commercial gas discovery.

The Rawicz-12 appraisal well, located in south-western Poland, commenced flow testing on 5 February 2015 and has to date flowed at an increasing rate of up to 4.1 mmscf (million standard cubic feet) per day. No significant amounts of water have been encountered and gas quality matches expectations. Well productivity, gas production rate and surface flowing pressure continually increased during the long high-rate flow period.

San Leon anticipates that an additional three to five wells will be drilled to develop the field, with the second well on Rawicz already in planning and being at no up-front cost to the Company. Gas prices in Poland are amongst the highest in Europe.

Rawicz-12 has been flowed only over the upper half of the gas-bearing interval, in order to minimise water production during the test. The absence of water production could enable future wells to be completed to a greater depth (where water saturation increases), increasing the flowing interval thickness and therefore the gas production rate. The existing well is vertical through the reservoir, meaning that deviated or horizontal wells during a development could be used to target still higher production rates.

It is expected that the well will complete its flow testing on 28 February 2015, following which pressure build-up data will be acquired for several weeks. This data measures the shut-in pressure response of the well, enabling reservoir characteristics such as permeability and volumetrics to be refined.

The Rawicz project is operated by Palomar Natural Resources with 65 per cent equity, and San Leon has no up-front drilling costs for its 35 per cent equity share of the first two wells.

Oisin Fanning, San Leon Executive Chairman, commented:

“This is the well we have been waiting for – a significant gas discovery in one of the highest-priced gas markets in Europe. The Rawicz field has existing gas infrastructure nearby and a development feasibility project has already been completed.”

“This well is transformational for the company, a step towards energy independence for Poland, and the first of what we anticipate will be a series of such wells for San Leon in the Rawicz field and elsewhere in Poland,” he added.

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