The Albanian government has approved the Durresi block licence petroleum complimentary agreement for San Leon Energy (LON:SLE), allowing it to focus on acquiring 3D seismic over the project.
San Leon holds a 75% stake and operates the block with partner Beach Energy holding the remaining 25% interest.
The 300 square kilometre (sq km) 3D seismic programme will evaluate the A4-1X discovery as well as prepare for a 2012 appraisal drilling programme in the undeveloped gas condensate field.
Beach Energy has agreed to 50% of the costs, rather than their 25% working interest requirement, for the upcoming 3D seismic programme in exchange for an option which, if exercised, will allow them to hold a 50% working interest in the licence going forward.
“This project is the catalyst for our Albania exploration programme.
“We see great potential in Albania, and are confident of a successful outcome in the upcoming evaluation and appraisal of the A4-1X discovery. Albania is quickly gaining momentum in our portfolio as our subsurface team continues to develop an inventory of exploration opportunities,” said executive chairman of San Leon Energy.
The Durresi block, offshore Albania, is situated along the highly prospective Apulian Margin.
The A4-1X field was discovered in 1983.
The discovery indicated about 38 million barrels of 51 API condensate and 150 billion cubic feet of gas. San Leon is also exploring multiple plays adjacent to A4-1X targeting both oil and gas.