San Leon Energy has signed a Letter of Intent (LOI) with Baker Hughes Poland Sp. z o.o. (Baker) to jointly begin to develop the Siekierki Gas Field1 in Poland, including Polish Concessions 206, 207 and 208. The Companies plan to start gas production from four existing wells, namely Trzek-1, Trzek-2ZH and Trzek-3H on the Siekierki structure, and the nearby Krzesinki-1 well (the "Wells").
Under the proposed agreement, it is envisaged that Baker will provide all funding necessary to recomplete and bring into production the Wells. Subject to finalisation of the funding mechanism, Baker's funding may be in the form of cash, in-kind oilfield services, or a combination of both. Baker services will be provided at their standard prices and based upon a Master Service Agreement to be agreed between the Companies.