San Leon to Begin Czaslaw-1 Stimulation, Test

San Leon Energy announced that its planned stimulation and test of the Czaslaw-1 well on the Company's Nowa Sol Concession in the Permian Basin of Poland will begin April 22 with the mobilization of coiled tubing, nitrogen lift equipment, and surface test equipment from Vechta, Germany. Recent measurements of the well have shown that the well is building pressure. After taking samples of the fluid in the wellbore the Company has recovered natural gas (including C1-C8) and light oil. Schlumberger has been contracted to complete this phase of the project. 

The Company estimates the following timeline:

April 25 - acid wash and clean out of the wellApril 26-30 - acid squeeze into the Main Dolomite reservoir; after soaking lift fluids in the well bore using nitrogen, followed by 3 day flow test up to 400 bbls of oilMay 1 - shut-in the well for 5 day build-up with downhole gaugesMay 6 - decision on a long term test and oil production, based upon results of the acid stimulation and test

The Czaslaw SL-1 well reached a total depth of 5,112 feet (1,558 meters) measured depth (4,032 feet or 1,229 meters TVD). The well penetrated 141 feet (43 meters) of the targeted Permian Main Dolomite reservoir. Petrophysical analysis shows moderate fracturing of the Main Dolomite within an estimated 95 feet (29 meters) of naturally fractured reservoir. Live oil shows were present on 90 percent of the core plug and detailed petrophysical and core analysis indicates moveable light oil in the Main Dolomite reservoir. The entire Main Dolomite interval shows high fluorescence suggesting both moveable and residual oil. Integrated petrophysical and rock-mechanical analyses suggest the well is a good candidate for artificial stimulation to enhance the natural fractures in the reservoir. There were no indications of water encountered during drilling. The well is the first well on the Czaslaw structure, with room for additional vertical and/or horizontal wells. Several similar structures have been identified in the Company's Nowa Sol 3D seismic survey which covers less than 15 percent of the Nowa Sol Concession area.

Executive Chairman, Oisin Fanning commented:

"The recent recovery of hydrocarbons and build-up of pressure in the Czaslaw-1 well is very exciting. We have been studying the Main Dolomite extensively over the past months with experts both in Europe and North America. We are now ready to stimulate and test the well and with success immediately move to production. There is a huge amount of oil in place in the Main Dolomite and we are committed to unlocking both the conventional and unconventional potential of the petroleum system."

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