San Leon wins two permits for exploration in Spain

21st Sep 2011 14:55

Realm Energy, a firm recently acquired by San Leon, has successfully completed an acquisition of two permits for shale gas exploration in Spain. Realm Energy, in collaboration with Halliburton Consulting, has been evaluating shale plays in numerous sedimentary basins in Spain for approximately two years and consequently submitted 10 applications in five discrete sedimentary basins, collectively comprising over 2.2m acres (8,903 square kilometres).In addition to the two successful permits, eight more are still in progress, with six now in the process for formal award. The group said: "As a result of this recent success, Realm Energy is now well positioned in five discrete sedimentary basins, making the company one of the largest landholders for shale gas exploration in Spain. "This presents a tremendous growth opportunity for the company as Spain also has a proven and stable fiscal system that ranks in the top 10% worldwide. Economic conditions are also attractive, as Spain is currently dependent on imports for its natural gas supply, and gas prices in the country are typically at a premium to prices found elsewhere in Western Europe."The company believes the shales in all basins are thermally mature and may be prospective for natural gas production. Initial analysis of existing well logs indicates that primary targets are likely to be shales at depths ranging from 6,000-11,000 ft. On August 26 San Leon announced that it had entered into an agreement with Realm Energy to acquire all of the issued and outstanding shares of Realm Energy, subject to approval by realm Energy shareholders in November.The share price was 1.23% to 20.50 by 15:26. NR