San Leon Energy Plc. (SLGYF)

[ChitForBrains]

Six months ended June 2011 http://www.sanleonenergy.com/sanleon/communications/Interim_Results_for_the_six_months_ended_30th_June_2011.php?ln=en

We have had a very active first half in preparation for our forward exploration programme:
Poland:
completion of the drilling and evaluation of the exploration well in the Nida Concession in September;
completion of the 2D seismic programme over the Gdansk W, Braniewo and Szczawno Concessions in June;
interpretation and prospect evaluation is ongoing of the Szczecinek Block 106;
completion by Acoustic Geophysical of 165 km2 of 3D seismic on the Company's 100% owned Nowa Sol Concession; and
work is ongoing in the Carboniferous shale play across the Wschowa, Gora, Winsko and Rawicz Concessions (San Leon 100%).
Ireland:
San Leon completed a 250 km2 3D seismic survey on the North Porcupine Licence (FEL 1/04) in May 2011.
Albania:
the 840 km2 Durresi Block 3D seismic acquisition survey was completed in April 2011. The data is currently being processed by Western Geophysical in London, who are expected to deliver the final processed data in early Q4 2011.
Morocco:
Novaseis has completed the 600km of seismic on the Tarfaya Licence and is now commencing acquiring 600km of seismic on the Zag licence.



Outlook for next 6 months

Poland

We are currently drilling both our unconventional shale gas and conventional oil plays in Poland and continuing with our strategy of trying to deliver near term cash flow through low cost exploration targeting shallow, oil plays whilst concurrently drilling the high impact and step-change value prospects in the Baltic and Carboniferous Basins.

We announced on 29 September 2011 the spudding of our first of three back to back wells in the Baltic Basin with Talisman Energy and are looking forward to the results.

The drilling location for our first Carboniferous unconventional gas well is currently being prepared in anticipation of spudding a well in the next month. A second well is also planned in late 2011 to early 2012 to extend the play fairway.

The first ever horizontal results in the Baltic basin have recently been announced by 3Legs Resources who reported sustained gas flows from multiple potential zones. The results from this first horizontal will lead to a decreased learning curve and we believe that the knowledge of this well and future wells will lead to significant gas production in Poland in the future. We have seen nothing to date that has indicated that this play will not work and in fact continue to get excited about the potential for big production in the coming years.

There will be a significant ramp-up in operational activity from other operators in Poland and this should lead to further derisking of the acreage and better understanding of the large upside potential of the play.


Realm acquisition

We are also delighted to have agreed terms to acquire Realm Energy International Corporation (“Realm”) which will add a further 464,919 acres leaving us with 1.7m net acres in our core areas of Poland in these very exciting plays. We look forward to a completion of the acquisition at the beginning of November. In addition, Realm’s recent award of 1.72m net acres in Spain provides us with new shale gas potential for future exploration making San Leon one of the leading shale gas land holders in Europe.




Albania

Final processing of the 840km2 of 3D seismic survey that we shot in April 2011 is expected during October this year and the operational programme following this will be decided following a thorough analysis of this data.

Ireland



We are currently seeking farm-in partners for the Slyne licence and have opened a data room to facilitate this process. Several companies are reviewing data and we will update the market as appropriate.

Processing of the recently acquired3D seismic survey over the C1/Conemara area is near completion and in Barryroe we are also awaiting final processed volumes very soon.

Morocco



The Novafor Rig is currently on the Tarfaya Well A location in preparation to run an injection and frac tests of the oil shale.The test will be monitored with Microseismic to determine fracture pattern. Once the test is complete we will drill Tarfaya Well C and core. We will then start our injection process between the three wells. This should take place at the end of a three weeks.