With the completion of its first shale gas exploration well in the Baltic Basin, San Leon Energy plc has taken another step in its goal of becoming one of the leading unconventional gas producers in Europe.

The Talisman Energy-operated Lewino 1G-2 well, on the Gdansk W Concession in Poland, has been drilled to 3,600 meters. During drilling continuous gas shows were encountered over more than 1,000 meters in the middle and lower Silurian shales, Ordovician, and upper Cambrian. Gas shows consist of methane (C1) with a small percentage of ethane, propane, butane, and pentane (C2-C5+).

While debate continues over the economics and feasibility of potential shale gas development across Europe, Poland, according to reports from IHS CERA, may have the greatest potential for shale gas development of all the European nations. 

San Leon Energy expanded its Polish shale acreage in November 2010 following an application process with the Polish Government that resulted in an expansion of its 100% controlled acreage on Blocks 48 and 49 on the Gdansk W Concession.

With its first shale gas exploration well, over 310 meters of core were taken to evaluate the rock properties. An open hole logging program was also performed to further evaluate the potential of the area. Evaluation and interpretation of the core and logs is expected to take 3-4 months in preparation for continued operations later in 2012.

Following completion of the well for potential future operations Talisman will move the rig to the Braniewo Concession to start drilling the Rogity-1 well, which will be immediately followed by a well in the Szczawno concession. Future operations are expected to include a long offset horizontal and multistage frac.

Oisin Fanning, chairman of San Leon commented, "Our systematic approach over the last three years of acquiring high potential acreage in Poland, finding an experienced partner in Talisman and acquiring a significant 2D seismic database has lead to our first successful well in the Baltic Basin.”

"The next step is to evaluate the geological data in preparation for the next phase of our project; to prove the viability of commercially producing the huge quantity of gas from the Baltic Basin.