San Leon has announced the Second Amendment (“Amendment”) to its Petroleum Sharing Contract (“PSC”) for the Durresi Block, offshore Albania, where the Company holds a 100% operating interest, became effective on 31 July 2013 following Council of Ministers approval and publication in country’s Official Gazette.
As previously announced in our 26 April 2013 update, the Amendment alleviates the tight timelines that existed in the PSC. San Leon now has two full years from 31 July 2013 to begin drilling operations. The Company plans to drill a well in 2014.
The Durresi Block is located on the proven Apulian Margin, on trend with a number of Tertiary gas and Mesozoic/Tertiary oil discoveries in the Italian Adriatic to the northwest, with the Patos-Marinza field, which is estimated to contain up to 5.7 billion barrels of OOIP located to the south east.