The firms will initially focus on developing the discovered, unproduced Siekierki and Rawicz gas fields.
PNR has paid cash upfront of $5m and $15m for the Southern Permian Basin and Northern Permian Basin Concessions, respectively, for a 65% working interest.
Additionally, PNR will carry San Leon for a defined initial work program for bringing the Rawicz and Siekierki fields into production as early as possible.
San Leon chairman Oisin Fanning said PNR will provide a team of US based industry experts who have the expertise to maximize production and ultimate recovery from these significant gas fields.
"The receipt of the up-front cash payments, and the execution of work programmes on Rawicz and Siekierki to target early production, put San Leon on a strong footing and will provide a basis for continued production growth throughout the Company’s portfolio," Fanning added.
PNR will operate all of the concessions which include the Rawicz (39/2009/p), Wschowa (8/2009/p), Gora (30/2008/p) and Nowa Sol (5/2009/p) concessions (Southern Permian Basin); and the Poznan North (26/2008/p), Poznan East (4/2003/p), Poznan East (5/2003/p) concessions (Northern Permian Basin).
The joint venture is divided into two core areas across seven exploration concessions.
Palomar Natural Resources CEO John Buggenhagen said with PNR’s technical expertise and strong financial position, and long experience of San Leon in Poland would provide significant production and strong revenue growth over the next 18 months.
"PNR is owned by the management and the Palomar Group, which is fully capitalised to execute its development plans for all of its assets including this joint venture," Buggenhagen added.
