San Leon finds gas in Texas

6th Jul 2009 08:28

San Leon Energy says a "significant" discovery of natural gas in the Palo Pinto County, Regular (Gas) Field, District 07B, Texas, will produce at commercial rates. The explorer, which also has interests in Morocco, Italy, Poland and the Netherlands, says indications are that the Nichols # 1 well will produce 1.2bcf (billion cubic feet) at up to 1.3 mmcf (million cubic feet) per day.It holds a 25% interest in Nichols # 1, operated by McCown Engineering, and will have an 80% interest in the other three wells to be drilled in the field. Larry McCown will own the other 20%. McCown Engineering estimates that each well-site is expected to produce reserves of 1.2bcf or a total field size of 5bcf of natural gas. Each well will cost $230,000 up to completion."San Leon can now join the very short list of producing AiM listed oil and gas companies," said boss Philip Thompson. "Whilst the initial discovery in itself is not massive, the outcome of the further three wells will make it more interesting, nevertheless it will provide both welcome positive cashflow into the company and also valuable experience in running a producing field."