San Leon in Poland farmout talks

Farm-in discussions: San Leon Energy adds two more parties to Permian talks

Irish explorer San Leon Energy said it is in talks with two more potential partners for its Permian and southwest Carboniferous basin assets in Poland weeks after US independent TransAtlantic Petroleum said its farm-in deal would not go ahead in its current form.

The Dublin-headquartered, central and Eastern Europe-focused company said that it “expects to make further announcements once these discussions have been finalised”.

Earlier this month, San Leon Energy denied that TransAtlantic Petroleum had dropped its plans to join the play and said that talks were ongoing to agree a final work programme.

TransAtlantic Petroleum signed a letter of intent in March to take a 50% stake in nine conventional concessions before announcing in the wake of due diligence that it would not go ahead with the “full acquisition” because some of the assets were more exploratory when it was seeking a development project.

Under the original plans, TransAtlantic would have fully carried San Leon for a six-well programme over the combined 1.9 million gross acres aimed at achieving commercial production in the Permian main dolomite and Rotliegendes formations.

Shares in San Leon Energy were trading up by around 2% at £0.02 on London’s Alternative Investments Market following Monday's announcement.  

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