July 3, 2013 / 8:36 AM / 4 years ago

Shale explorer San Leon signs farm-out deal; shares rise

1 Min Read

July 3 (Reuters) - Poland-focused shale explorer San Leon Energy Plc said it would farm out its oilfield in the Baltic basin in Poland to privately owned Wisent Oil and Gas, sending its shares up by as much as 18.5 percent.

The company said it signed a letter of intent with Wisent Oil and Gas to fund a three-stage vertical fracture of Rogity-1 well in Braniewo S concession in the Baltic basin.

San Leon said Wisent would have the option to fully fund the drill and testing of a horizontal well to earn a 45 percent interest in the concession. San Leon would remain the operator following the farm out.

"Its a major step for the company to get a farm-in partner but the commercialisation of shale production in northern Poland is still in early days," Macquarie Research analyst Mark Wilson told Reuters.

Shares in the company were up 14.5 percent at 5.75 pence at 0833 GMT on Wednesday on the London Stock Exchange. (Reporting by Tasim Zahid in Bangalore; Editing by Supriya Kurane)

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