San Leon Makes "Significant Progress" in Albania

San Leon Energy has said it has made "significant progress" on its 100 per cent-owned Duressi Licence in Albania. The announcement comes as part of the opening on a "data room" by the company to a select number of companies with the view of potentially allowing farm-outs on the prospects.

"We continue to make rapid progress on our Albania project," Chairman of San Leon, Oisin Fanning said.

"After being awarded the Durresi License in February 2011 we quickly shot our 3D program and, less than a year later, are identifying numerous high quality oil and gas prospects across the license. The new 3D has revealed several large structural oil and gas prospects and is showing the significant stratigraphic potential that exists across the license.The possibility of using seismic amplitudes to significantly reduce exploration risk further demonstrates the high potential of offshore Albania.

"We are very excited by the potential of the Durresi License and the interest that we are receiving from industry leading E&P companies to gain access to this high potential area. Albania is quickly becoming a core focus area for San Leon given the huge upside potential, lower risk exploration and the level of interest that we have received from leading E&P companies."

The company has not revealed the names any of the interested parties. It says it has signed confidentiality agreements with "several large E&P companies"  who have shown interest in farming into the licence and continues to receive unsolicited interest from other parties. Because of this, it has decided to open its "data room" early to select companies and has already hosted several companies for meetings.

San Leon says it has so far identified the potential for more than 1 billion barrels of oil equivalent (BOE) within the licence, with six source rock intervals identified with oil reservoirs expected in Mesozoic carbonates and flysch as well as numerous gas reservoirs in the shallower Tertiary clastic deposits.