San Leon Energy picks up Sicily licenses

San Leon Energy has been successful with permit applications for three licenses offshore Sicily:

Offshore staff

DUBLIN -- San Leon Energy has been successful with permit applications for three licenses offshore Sicily:

- D352 CR-SL, an area comprising 358.5 sq km (138 sq mi), located west of Sicily in the Canal Zone C, below the Egadi Islands
- D353 CR-SL, an area comprising 226.2 sq km (87 sq mi), located southwest of Sicily in the Canal Zone C
- D354 CR-SL, an area comprising 482.5 sq km (186 sq mi),located southwest of Sicily and near the coast in the Canal Zone C.

Permit D352 CR-SL includes the previously discovered Narciso field, which is the subject of Italian Ministry records Report to the Technical Committee for Hydrocarbons, Rome, 04/04/1986. Fugro Robertson recently completed an evaluation for San Leon on this field and reported a mean case of 7 MMbbl of oil. Oil was proven on this site by AGIP in 1986.

The Narciso 1 & 2 discovery wells were drilled and produced oil with a gravity 21° to 25° API from a Fossiliferous Oligocene Limestone, which was penetrated at 787.6 m (2,584 ft). The Narciso field produced 800,000 bbl of oil after two production tests. The Ministry approved Agip's (ENI) application to produce oil from the Narciso field in April 1986, however at that time oil was $10 a barrel and full production was deemed uneconomic. The site was abandoned and the permit expired.

Several exploration prospects, identified on 2D seismic, are on trend with the Norma, Naila, and Nilde fields, southwest of the permit, and Narciso, which also resides on the permit, the company says. Nine seismic campaigns were executed during the three exploration periods of the original ENI permit. The D353 CR-SL permit resides to the southwest of the Narciso permit and just east of the Norma, Naila, and Nilde oil fields.

03/10/2009

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