LONDON--San Leon Energy PLC (SLE.LN), a Poland-focused oil and
gas company, Wednesday said it has signed a deal with Talisman
Energy Inc. (TLM) to regain 100% ownership of the Gdansk W and
Braniewo S concessions, and increase its interest to 50% in the
Szczawno concession, in the Baltic Basin.
MAIN FACTS:
-Talisman's decision to exit Poland is driven by its strategic
priority to focus on production in its two core areas, the Americas
and Asia-Pacific.
-In February 2010, Talisman signed a farm-in agreement to earn a
30% working interest in the concessions in return for certain
commitments, including drilling one well in each concession, with
the option to increase its interest to 60% by drilling a further
well in each concession.
-To date, Talisman has drilled one vertical well in each
concession.
-San Leon and Talisman have now signed an agreement whereby San
Leon has acquired 100% of the shares of Talisman's subsidiary in
Poland, Talisman Polska. In consideration, San Leon has assumed all
assets and obligations of Talisman Polska.
-In addition to the interests in the three concessions, Talisman
Polska's assets are valued at an estimated $10 million, and include
cash and drilling equipment.
-Talisman Polska has no debt.
-Talisman had carried San Leon on all expenses related to
drilling the three wells in the Baltic Basin.
-San Leon will now use Talisman Polska's cash to fund the
planned fracture of its Lewino-1G2 well in the Gdansk W Baltic
Basin concession.
-The vertical fracture is intended to prove the unconventional
gas potential of the Lower Silurian and Ordovician shales.
-Operations will begin as soon as permitting and regulatory
approval is granted.
-Shares closed Tuesday at 6.9 pence.
-Write to Iain Packham at iain.packham@dowjones.com
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