San Leon Energy PLC has purchased 75% working interests in three Poland blocks held by Hutton Energy PLC, and the two companies plan to jointly develop unconventional gas.
The three concessions are the 118,611-acre Prabuty Południowe block in the Baltic basin and the 219,430-acre Wielun block and the 286,642-acre Olesnica block in the Carboniferous basin.
San Leon will acquire a 75% working interest in the concessions for $15 million in stock. Hutton agreed that its San Leon shares will be held in escrow for 12 months from the date of issuance. Completion is expected within 4 weeks.
Hutton will be carried on all seismic work and associated G&A that will be performed by NovaSeis, San Leon’s seismic acquisition subsidiary. Upon completion of the transaction San Leon will become operator of the concessions.
Hutton’s 25% working interest would be reduced by 5% if it did not participate in the first exploratory well on each concession and would be reduced by a further 5% if it did not participate in the second exploratory well on each concession.
The interests increase San Leon’s position to 900,255 net acres in the Baltic basin and 1,588,147 net acres in the Carboniferous basin.