San Leon and Beach Energy Announce Start of 3D Seismic Survey Offshore Albania

San Leon and its partner, Beach Energy Limited,  announced they have commenced an 840 square kilometre 3D seismic survey on their Durresi Block, offshore Albania.

Petroleum Geo-Physical AS (“PGS”) has been contracted to carry out the survey using the M/V Ramform Vanguard seismic vessel. The 3D seismic programme will evaluate a number of highly prospective structures in the Block, including the A4-1X discovery, in preparation for a 2012 appraisal drilling programme.

San Leon, through a subsidiary, holds a 75% interest in the block and is the operator. Beach Energy holds the remaining 25% interest. Beach Energy has agreed to pay 50% of the seismic programme costs, rather than their 25% working interest requirement, in exchange for an option which, if exercised, will allow them to hold a 50% working interest in the licence going forward.

As detailed on 18 September 2009, San Leon has a seismic services agreement with PGS Ventures AS, who is providing a $50m facility for seismic services. San Leon’s Albania seismic acquisition costs will be paid for through this agreement.

The Durresi Block contains the undeveloped A4-1X gas condensate field, which was discovered in 1993, 30 km off the southern coast of Albania. The discovery indicated circa 38 mmbbls of circa 51 API condensate and 150 BCF of gas. The Company is also exploring significant potential multiple plays adjacent to A4-1X targeting both oil and gas. This underexplored, highly prospective, area is situated on the proven Apulian Margin, which extends from Italy into Albania. Southern Albania contains a highly prolific petroleum system including one of the largest onshore oil accumulations in Europe, the Patos-Marinza field, which is estimated to contain up to 5.7 billion barrels of OOIP.

Oisín Fanning,Executive Chairman of San Leon Energy, commented:

“We are delighted that we have been able to mobilise a vessel so quickly after being awarded approval for the Durresi Block at the beginning of February. Albania is generating a lot of international interest at this time and we are excited by the potential we see in our acreage. Our 3D seismic programme is the largest ever carried out in Albania and we are confident that we are on track to drill an A4-1X field appraisal well in 2012.”

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Source: sanleonenergy ,March 18, 2011