Exploration firm San Leon Energy has entered a joint venture with Palomar Natural Resources (PRN) to develop the Siekierki and Rawicz gas fields in Poland.
The agreement covers seven concessions in the Polish Permian Basin: four in the Southern basin and three in its Northern part.
PNR has paid $5million and $15million cash upfront for a 65% working interest in each of the Southern Permian Basin and Northern Permian Basin concessions, respectively.
In the Southern basin the company, set up last year by San Leon’s former exploration director John Buggenhagen, will carry San Leon’s participating interest in the first two development wells on the Rawicz gas field including drilling, evaluation, completion and testing of each well in the Permian Rotliegendes formation.
PNR is looking to start operational planning immediately pending final approvals and permits from the Polish regulatory authorities. The first well is planned to be drilled late 2014, including completion and testing.
In the Siekierki gas field basin PNR will fully carry the work over, recompletion and testing of three existing wells (Trzek-1, Trzek-2H and Trzek-3H) in the Permian Rotliegendes formation. The wells produced an average of approximately 3million standard cubic feet per day during previous testing.
“I am delighted to be working again with John Buggenhagen, former exploration director of San Leon, who knows these assets as well as anybody,” said Oisin Fanning, San Leon chairman.
“PNR bring a team of US based industry experts who have the expertise to maximize production and ultimate recovery from these significant gas fields.
“The receipt of the up-front cash payments, and the execution of work programmes on Rawicz and Siekierki to target early production, put San Leon on a strong footing and will provide a basis for continued production growth throughout the Company’s portfolio.”