WARSAW Nov 27 3Legs Resources and ConocoPhillips are to continue their joint pursuit of Polish shale gas after encouraging Baltic Basin test results, reviving the country's hopes of reducing its reliance on Russian gas.
Poland's hopes of tapping shale gas deposits had begun to fade this year, with Marathon Oil and Talisman Energy following Exxon Mobil in pulling out of the country.
But the recent appointment of a new environment minister, who called shale gas his priority, and encouraging results test wells have raised expectations again.
3Legs Resources, whose biggest shareholders include BlackRock and JPMorgan Chase, said it plans, with ConocoPhillips, further testing wells at western Baltic Basin concessions in 2014.
"We remain firm believers in the potential for a successful shale gas project in Poland," said Chief Executive Kamlesh Parmar, citing promising acreage and results.
3Legs Resources estimate the cost of the exploration programme at $63 million.
"Our programme is designed to show flow rate from our long latteral well in 2014. Only once we receive the results, we can talk about what the timeline may look like for commercial production," Kamlesh added.
The announcement comes a day after San Leon Energy said that the results from one of its test wells in Poland's northern Baltic Basin exceeded expectations.
On Wednesday Poland's deputy environment minister Piotr Wozniak repeated that shale gas exploitation on a commercial scale will start in 2014. (Reporting by Agnieszka Barteczko; Editing by David Goodman)