San Leon Takes Major Interest in Three Polish Licences

San Leon Energy has announced today that it will take a substantial interest in three of Hutton Energy's unconventional gas concessions in Poland, with a view to jointly developing the assets.

Through a deal stuck between the two explorers, San Leon will take a 75 per cent stake in three of Hutton Energy's concessions in the country. These are the Prabuty Poludniowe concession in the Baltic Basin and the Wielun and Olesnica concessions in the Carboniferous Basin.

Under the terms of the deal, Hutton Energy will retain a 25 per cent working interest in each of the concessions, though this stake will be reduced by 5 per cent per concession should the company not participate in the first exploration well on each. This stake will be further reduced by 5 per cent should Hutton not participate in the second exploration well on each concession. 

Chairman of San Leon Oisin Fanning said the interests would complement its current operations in Poland.

"We are very excited to continue to expand and diversify our prospective acreage position in Poland," he said. 

"Our focus on the huge upside potential of the Baltic and Carboniferous Basins follows the company's strategy of building a portfolio of high potential assets. We see this agreement with Hutton as a real positive for San Leon as the addition of this acreage gives us an unprecedented acreage position in Poland."

San Leon will increase their interest in unconventional prospects the country by 468,512 acres.

The deal is made at a cost of $15 million (USD), paid in San Leon shares to Hutton Energy. These shares will then be held in escrow for 12 months. San Leon to assume the role of operator once the deal is completed in around four weeks time.