San Leon Energy has announced that it has agreed key commercial terms with Baker Hughes Poland (“Baker”) (together “the companies”) on the Siekierki gas field development on Polish Blocks 206, 207 and 208. The companies are now moving forward to finalising transaction documents.
In February 2014, Baker signed a Letter of Intent (“LOI”) to bring the Siekierki gas field into production. Commercial discussions and operational planning have progressed significantly since then in an effort to ensure workovers on the four Trzek wells are carried out in the summer and production is established as quickly as possible.
The work will be divided into three phases, with Phase Two dependent on the results of the first phase. Phase 1 encompasses the workover and testing of the Trzek-2ZH and Trzek-3H wells, permitting and commercialisation planning. Phase 2 includes the workover and testing of the Trzek-1 well and construction of a water disposal well, plus well permitting and commercialisation planning. The Krzesinki-1 well will be subject to further evaluation and will be included in Phase 2 at Baker Hughes’ sole discretion. Phase 3 includes the design and installation of facilities and transport infrastructure necessary to begin sale of hydrocarbons from Phase 1 and Phase 2 wells.