San Leon Energy says that its decision to enter into the Baltic Gas Shale play in Poland has this week culminated in this exciting farm in announcement with Talisman Energy Inc. Talisman is a diversified, global, upstream oil & gas company, based in Canada, currently piloting and developing a number of shale plays in North America. Talisman has signed a farm in agreement with San Leon that covers the Company's two existing Baltic Basin concessions (Braniewo & Gdansk W) and also extends to a 3rd pending concession application in the Gdansk area.

Highlights: • San Leon carried through seismic programme and potential 6 well programme - an estimated investment of US$80 million • Talisman will pay 60% of the seismic costs, remaining costs will be covered through the PGS agreement • Talisman has paid San Leon €1.5 million on signing the joint venture agreement • Talisman to drill one well across each of the three concessions • Option to follow up with three further wells - should the data encourage further development • Talisman will be assigned a 60% interest in the concessions • San Leon estimates potential of 4.0-6.0 TCF of recoverable natural gas across these concessions

A Farmout has been signed between the San Leon Polish subsidiary Oculis Investments Sp. z o.o. and Talisman Energy Inc. for the exploration of shale gas in the Baltic Basin onshore Poland. Under the agreement Talisman has agreed to pay 60% of the costs of a seismic programme and has made a cash payment of €1.5 million to San Leon. The remaining 40% will be conducted and paid for under the 2009 agreement between PGS and San Leon. Talisman will also drill one well across each of Oculis's three concessions with the option to follow up with a further three wells should the data encourage further development. Talisman will be assigned a 60% interest in each concession, reducing to 30% if it doesn't elect to drill the optional second well. This represents a potential estimated investment of more than $80 million USD in the coming three years to prove a potentially significant gas play in Poland.

Tags: San Leon Energy, Talisman Energy