Oil & Gas Corporate News
San Leon Energy (LON:SLE) (BUY, £0.80) (SLE, 15.5p, ? (1.59%)) announced that its wholly owned Polish subsidiary Liesa Energy Sp. z o.o. has entered into a binding agreement to acquire three additional concessions for oil and gas reconnaissance and exploration, including the associated mining usufruct agreements, for a total of US$1.0m in cash and shares. On completion, San Leon will have a 100% interest in the Concessions. The company expects to make a further announcement in due course as the transaction is subject to final regulatory approval. The 30/2008/p Gora, 20/2009/p Winsko, and 39/2009/p Rawicz Concessions totaling 1,314km2, are located in the southern area of the Fore Sudetic Monocline of the Permian Basin, onshore western Poland. These Concessions include portions of license blocks 245, 265, 266, 267, and 268. The Concessions are valid for up to 5 years.
Comment: Another good licence acquisition in Poland where San Leon is building a strong position in unconventional gas plays.
Gulfsands Petroleum (LON:GPX) (HOLD, £3.00) (GPX, 340p, ? (0.44%)) confirmed that Saipem S.p.A. has been selected for the construction of the Central Processing Facility to be installed at the Khurbet East oil field on Block 26, Syria. The CPF has been designed with an initial capacity to handle the processing of 50,000bofd of which it is expected initial oil production will be 33,000bopd. The completion is now anticipated for September 2012. The contract tender price of US$ 129m represents a modest increase in the Company's original estimate reflecting changes to the engineering design to facilitate ready expansion of the plant's capacity and movement in the Euro/US$ exchange rates since original estimates were prepared. The estimated cost to Gulfsands after cost recovery is approximately US$ 22m. The 2010 3D seismic acquisition programme, consisting of approximately 1,025 km2 of new 3D seismic data directly west of the Greater Khurbet East area, is approximately 80% complete. The programme remains on track to be completed during Q4 of this year, with delivery of the final processed data during the first quarter of 2011. Drilling continues on the Zahraa-1 exploration well, spudded on 21 October. The Zahraa prospect is located in the far northeast portion of the Block, near the intersection of Syria's borders with Iraq and Turkey. The well will evaluate a…
