San Leon Energy PLC (LSE:SLE) is an independent oil and gas exploration and production company. It also happens to be Europe’s leading shale gas company in terms of acreage. It’s principal assets are located in Poland, Morocco, Albania, Ireland, Span and Italy. These assets encompass both conventional exploration and shale assets.
(LON:SLE) San Leon Energy shares opened at GBX 4.55 at the beginning of today’s trading session on the London Stock Exchange. The stock has a 52 week range of 3.5p to 8.7p.
San Leon Energy Updates for Investors: MoU with Chevron and Poland’s Shale Gas Project
According to Alliance News, San Leon Energy on 28th January announced that it had signed a MoU with Chevron Lummus Global LLC to cooperate on shale gas upgrading technology at San Leo Energy’s Timahdit oil shale license located in Morocco. Chevron Lummus Global LLC is a partnership between Chevron Corporation the engineering company, Lummus Corporation.
The oil & natural gas exploration and production company currently has on-going operations in Europe and North America. It stated that as per the MoU, the two of them will cooperate and work together in order to develop the required technology to produce high-quality synthetic crude oil from the raw shale oil to be produced from the licence area.
According to the company’s statement, this deal is going to result in a detailed evaluation by Chevron Lumnus of the shale oil produced on-site and the technology is to be designed and delivered with the cooperation of Enefit Outotec Technology, a joint venture of shale energy company, Enefit Energia AS and the metal-processing tech company Outotec Oyj.
The initial plan intends to place three units at the Timahdit plant which is to be designed with capacity-increasing capability to exploit the hydrocarbon resources that are estimated to be 600 million stock barrels of shale oil in the licence area.
Moreover, San Leon Energy is gradually approaching its objective of commercially producing natural gas from its shale assets in Poland. According to the initial Lewini-1G2 well testing results, a sustained gas production rate of about 45,000-60,000 cubic feet a day was realized after about six weeks of cleaning up.
The company’s engineers and industry experts speculate that a production rate of 200,000 to 400,000 cubic feet of gas a day could be achieved following a full cleaning up of the fracking fluid.
Dennis McKee, CEO of United Oilfield Services, the company behind all the equipment provided to this project said that – ”The recovery of gas so early in the flowback of frac fluid is highly unusual and very positive. It suggests to me that the formation really wants to flow gas.”
(LON:SLE) San Leon Energy’s Future Prospects According to Beaufort Securities
Analysts at Beaufort Securities re-iterated its earlier rating of ‘speculative buy’ for (SLE) San Leon Energy stocks. Beaufort is quite hopeful about future gas production from the Polish Ordovician shales given the successful Lewino-1G2 well testing and San Leon’s strategic relationship with United Oilfield Services.
According to ProactiveInvestors.uk, the firm stated that “We expect to see a rapid progress of San Leon’s shale operations in Poland, going forward. Given a good mix of conventional and unconventional asset base of more than 12 million net acres and further upside potential through unveiling of the total underlying potential of Ordovician, the company is likely to maintain its strong growth momentum.”
http://www.therem.org/lonsle-san-leon-energy-rating-upgraded-to-buy-by-b...