LATEST NEWS

Appointment of Non Executive Director

San Leon Energy PLC ('San Leon' or 'The Company') is pleased to announce the appointment of Mr. Shaun Hennessey as a Non Executive Director with immediate effect.

Extension of 29.62 per cent. irrevocable undertakings to accept an offer if made

On 15 October 2009, San Leon announced that it had made a proposal to Island Oil & Gas plc ("Island") for the combination of the two companies with a view to building a strong Irish-based oil and gas exploration business and that it had received an irrevocable undertaking on 14 October 2009 from Platinum Petroleum Limited ("Platinum"), the largest shareholder in Island, to accept or procure acceptance of such offer in respect of, in aggregate, 25,000,000 Island Shares representing approximately 18.4 per cent. of Island's issued share capital.

Joint Venture Agreement with Al Meinaa Oil Services of Iraq

San Leon is delighted to announce that it has entered into a joint venture with Al Meinaa Oil Services Limited ("Al Meinaa") for the reciprocal referral and joint evaluation of Oil and Gas projects in the Republic of Iraq (the "Joint Venture").

Award of Nida Concession in Poland

San Leon is pleased to announce that its wholly owned Polish subsidiary Vabush Energy Sp. z.o.o ("Vabush") was awarded the Nida Concession (the "Concession") for oil and gas reconnaissance and exploration and the mining usufruct agreement. San Leon has a 100% interest in the Concession.

Update on negotiations with Island Oil & Gas plc ("Island") & provision of Working Capital Facility to Island

San Leon, the AIM-listed international oil and gas company, announced on 15 October 2009 that it had made an indicative proposal to Island for the combination of the two companies with a view to building a strong Irish-based oil and gas exploration and development business.

Award of Gdansk W Concession in Poland

San Leon is pleased to announce that it’s wholly owned Polish subsidiary Oculis Investments Sp. z o.o. ("Oculis") was awarded the Gdansk W Concession for oil and gas reconnaissance and exploration and the mining usufruct agreement. San Leon has 100% interest in the Concession.

Morocco - Zag

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Initial work on Zag License completed
Aeromagnetic survey has indicated promising structures
60km anticline worthy of significant further interest
Upgraded to a full Exploration Licence June 2009
Zag/Tindouf-Reggane Basin highly prospective
- New discoveries made on the Algerian side of the Tindouf-Reggane Basin confirm prospectivity
- Repsol discovery at North Reggane flowed 22.2 MM cu ft/day
- New RWE farm-in to Moroccan licence adjacent to San Leon's

The Tindouf-Reggane Basin is also known as the Zag Basin in Morocco and is the most western of the hydrocarbon prolific North African Paleozoic basins. This basin, located on the western edge of the Sahara Desert, is very under-explored.

Location: Tindouf (Zag in Morocco) Basin
Areal Size: 21,807 km2 (5,430,000 acres)
Working Interest: 50%
Operator: San Leon (Morocco) Ltd.

Hydrocarbon Potential: 10-20 TCF of gas and 500-800 MMBO, based on Sonatrach's projection of petroleum potential over the entire basin complex, could be found in the Zag License, .
This basin, located on the western edge of the Sahara Desert, is very under-explored. Yet a gas discovery and strong oil shows on the Moroccan side, gas discoveries in the southeastern extension of the basin (Reggane Basin) in Algeria, and the widespread presence of the famous Silurian oil and gas generating shale, indicate that this basin is no different than the world class Paleozoic petroleum province that extends across North Africa. Exploration in this vast Saharan Paleozoic basin is accelerating as PetroCanada, the large Canadian independent, began acquiring the first ever 2D seismic acquisition program on the Moroccan side of the basin in May,2009. San Leon will also acquire 2D seismic to the south of PetroCanada's survey in the near future. Sonatrach has recently conducted technical work on the Algerian side and Repsol continues to drill wells on the far eastern side of the basin complex.

San Leon completed its work obligations on the Reconnaissance License . As a result of the positive results received from this work the Company has successfully negotiated with ONHYM the conversion of the Reconnaissance Licence into a full Exploration Licence beginning in June, 2009.
San Leon Energy's high resolution aeromagnetic survey, which was integrated with surface and subsurface data, indicated some very large structures; including a 60 km long anticline with the potential for hydrocarbon reserves.

Several significant discoveries have now been made on the Algerian side of this basin complex by Repsol and partners RWE DEA, Sonatrach, and Edison. The most recent discovery by the Repsol Group was in their North Reggane concession with a well that flow tested 629,000 cu m/day (22.2 MM cu ft/day). Repsol's holdings have been reported to be 145 million boe on the eastern side of the Tindouf-Reggane Basin.

The Moroccan side of the Tindouf/Reggane Basin has remained virtually unexplored but since the petroleum system has been shown to be geologically similar across the vast basin, San Leon hope to make similar discoveries in Morocco as Repsol has in Algeria. The Board is also of the opinion that Morocco has arguably one of the best petroleum licensing regimes in the world.

The Board are also encouraged by the recent RWE DEA farm-in to the licence adjacent and to the north of San Leon's Zag License.This is RWE's first move into Morocco and is seen by the Board as highly encouraging.

SAN LEON ENERGY

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