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San Leon plans first horizontal well in Poland after most successful test to date

Last updated: 06:05 23 Jan 2014 GMT, First published: 07:05 23 Jan 2014 GMT

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San Leon Energy (LON:SLE) said it will drill its first horizontal well and multi-stage frack in Poland’s Baltic Basin after revealing results from its most successful vertical well test to date.

Lewino-1G2 flowed 45,000–60,000 standard cubic feet per day from the Ordovician shales despite the well not being fully cleaned up.

Data acquired by SIGMA3 Engineering estimates a potential rate of 200,000–400,000 feet a day of gas following a full clear-up of the frack fluid.

Meanwhile, the experience in the US suggests horizontal wells typically yield seven to 30 times the production rate of verticals. On that basis production from the Baltic Basin horizontal could total several million standard cubic feet a day.

Chairman Oisin Fanning said: "This is the most encouraging vertical shale well test in Poland to date.

“We have moved a long way towards cracking the code towards commercial production from our unconventional plays.

“This has been achieved in conjunction with our technical partners, and is the result of the successful iteration of the frack design to the point where we can now see the production potential of our extensive shale gas acreage in Poland’s Baltic Basin.

“These learnings will be put to good use in the planned multi-staged fracked horizontal well in the Lewino area, where we believe we shall be able to stimulate the entire vertical extent of the Ordovician interval with each frack, and prove commercial flow rates."

Dennis McKee, boss of United Oilfield Services, the company carrying out the drilling for San Leon, said the recovery of gas so early in the flow back of frack fluid was “highly unusual and very positive”.

“It suggests to me that the formation really wants to flow gas,” he added.

“In the upcoming horizontal well we can use the success from the frack design from the upper Ordovician to target the whole of the Ordovician, as I think that the lower Ordovician only flowed back during the early stages and then closed up.

“This lower formation layer may well have been the source of the very early gas, and our knowledge of what works from frac 3 should enable us to keep it open in future wells.

“I look forward to the horizontal with great anticipation as it stands a strong chance of proving up this play.”

The results gleaned from the vertical suggested a horizontal well should be drilled and tested as “soon as possible”, said San Leon. The US$55,000-a-day of clean-up costs were also cited as a factor for moving to the next phase.

The company and its contractor are preparing to drill a 1,500-metre horizontal with a multi-staged frack programme.

Successful developments of shale in Poland will likely use wells of this design, San Leon said.

Long, horizontal multi-fracked wells have a number of advantages over verticals. Not only do they have higher production rates and recoveries, they are also easier to clean up.

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