Aim-traded San Leon Energy is getting in on the unconventional gas rush. It has a series of shale gas concessions among its diversified portfolio of assets, the most promising in the short term being in Poland. It recently signed a farm-in deal with Canada's Talisman Energy that covers its two Baltic Basin concessions and a third pending application.
The deal will allow San Leon to advance these projects rapidly, with Talisman bearing the costs of the seismic survey programme and drilling at least three, potentially up to six, wells. Talisman will acquire a 60 per cent interest in the concessions for a total investment estimated at $80m (£53m).
Polish shale gas offers potentially greater attractions than comparable US prospects. Poland, like many of its eastern European neighbours, is seeking to throw off its dependency on Russian gas imports and with less of a glut of gas in western Europe than the US, pricing is keener. Recognising the resource and market potential, major oil groups ExxonMobil, ConocoPhillips and Marathon have all acquired acreage and will be pushing forward with Talisman/San Leon to open up this new unconventional gas play.
