The Irish oil company Island Oil and Gas - and their partners in San Leon - today announced their intention to upgrade their licence in occupied Western Sahara from a frontier licence to an exploration licence.
A similar statement from Island's partner San Leon Energy, is to be found at the bottom.
See their press release here
Press Release Island Oil and Gas 25 February 2009
Moroccan operational update -Aeromag survey defined promising structures -Imminent negotiations with ONHYM to upgrade Frontier licence into Exploration Licence -Highly positive regional moves: discoveries and international major farm ins Island Oil & Gas, the Irish exploration and production company with an international portfolio is very pleased to note today’s statement by San Leon, operator of the Joint Venture set up to explore the Zag basin, onshore Morocco.
Aeromagnetic surveys have defined a number of promising structures. The results of the survey have greatly encouraged the joint venture (Island 20%) and negotiations are to commence on upgrading the Reconnaissance Licence to a full Exploration Licence.
In addition, Island notes the highly positive regional news of both new discoveries on the Algerian side of the basin and the entrance of international major RWE to the licence adjacent to Island’s.
Paul Griffiths, CEO of Island Oil & Gas commented:
“All of these moves are highly positive in both a regional and specific context. The entrance of such a major company as RWE to the adjacent licence validates our first mover activity.
The results from the aeromag, whilst very early, are very exciting. With excellent terms currently being offered in Morocco, we look forward to the future with confidence”
25 February 2009
Island Oil & Gas plc Paul Griffiths Carl Kindinger Tel: +353 1 6313755 www.islandoilandgas.com
Davy (NOMAD and broker) Anthony Farrell Tel: +353 1 679 6363
College Hill (Financial PR) Paddy Blewer Nick Elwes Tel: +44 (0)20 7457 2020
San Leon Energy Plc ("San Leon" or "the Group") Initial work on Zag License completed
Aeromagnetic survey has illustrated promising structures 60km anticline worthy of significant further interest San Leon to commence negotiations with Moroccan Government to upgrade to a full Exploration Licence Tindouf-Reggane Basin highly prospective New discoveries made on the Algerian side of the Tindouf-Reggane Basin confirm prospectivity Repsol discovery at North Reggane flowed 22.2 MM cu ft/day New RWE farm-in to Moroccan licence adjacent to San Leon's
San Leon Energy Plc (SLE.L), an international oil and gas exploration company, is pleased to announce that it has completed its work obligations on their Zag Reconnaissance License in the western part of the highly prospective Tindouf-Reggane Basin (known as "Zag" on the Moroccan side) in Morocco. As a result of the positive results received from this work the Company has decided to continue exploring Zag and will commence negotiations with ONHYM in the very near future to upgrade the Reconnaissance Licence to a full Exploration Licence.
San Leon Energy's high resolution aeromagnetic survey, which was integrated with surface and subsurface data, indicated some very large structures; including a 60 km long anticline with the potential for hydrocarbon reserves.
Several significant discoveries have now been made on the Algerian side of this basin complex by Repsol and partners RWE DEA, Sonatrach, and Edison. The most recent discovery by the Repsol Group was in their North Reggane concession with a well that flow tested 629,000 cu m/day (22.2 MM cu ft/day). Repsol's holdings have been reported to be 145 million boe on the eastern side of the Tindouf-Reggane Basin.
The Moroccan side of the Tindouf/Reggane Basin has remained virtually unexplored but since the petroleum system has been shown to be geologically similar across the vast basin, San Leon hope to make similar discoveries in Morocco as Repsol has in Algeria. The Board is also of the opinion that Morocco has arguably one of the best petroleum licensing regimes in the world.
The Board are also encouraged by the recent RWE DEA farm-in to the licence adjacent and to the north of San Leon's Zag License. This is RWE's first move into Morocco and is seen by the Board as highly encouraging.
San Leon operates the Zag Reconnaissance License with a 50% stake and partner Island Oil and Gas Plc has a 20% interest. The other partner is Longreach Oil and Gas with 30%.
Phil Thompson, CEO of San Leon Energy commented
"Our aeromagnetic survey has fully justified the management team's belief that the Zag (Tindouf) Basin, and our licence in particular has potential.
When combined with the discoveries on the Algerian side of the basin and the highly attractive terms currently in place throughout Morocco, we could only be optimistic.
The next task is to identify opportunities to further narrow drilling targets; unlocking what we believe to be serious value in this licence."
25 February 2009
For further information, please contact:
San Leon Energy Plc Oisin Fanning, Chairman Phil Thompson, Chief Executive Officer Tel: + 353 1291 6292 www.sanleonenergy.com
Daniel Stewart & Co. Plc Graham Webster/Stewart Dick Tel: +44 (0) 20 7776 6550 www.danielstewart.co.uk
College Hill Associates Paddy Blewer/Nick Elwes Tel: +44 (0) 207 457 2020 www.collegehill.com
Qualified person Philip Thompson has over twenty five years experience in the oil & gas industry. He has an M.Sc. in Geophysics from Southern Methodist University and a B.Sc. in Geophysics from Texas A&M University.
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