Nov 11

 

San Leon Energy PLC has spudded the Siciny-2 stratigraphic test on the company’s 100% owned Gora concession 70 km southeast of Zielona Gora, Poland.

The Southwest Carboniferous basin stratigraphic test is to go to 3,500 m and take 400 m of core for an advanced geological and geophysical evaluation initiative. No tests are planned.

The well is designed to test the unconventional gas potential of Carboniferous sediments, believed to be the source rock for the gas production in the overlying Permian Rotligendes and Zechstein formations in Poland.

Based on well results San Leon will plan further evaluation and drilling in 2012.

Source: Oil and Gas Journal

 

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Nov 03

 

The Treasury Ministry’s plan assumes a maximization of the number of shale gas drillings by state-controlled companies such as PGNiG or PKN Orlen, which are scheduled to carry out 65 drillings each until 2014, the daily Dziennik Gazeta Prawna reports.

Poland will be extracting 200-300 million cubic meters of shale gas in 2014, the daily writes citing deputy Treasury Minister Mikolaj Budzanowski.

The number of shale gas drillings in Poland should increase to 1,000 per year in 2020, Budzanowski said, arguing that roughly such number of drillings is required to put yearly shale gas extraction at 300 million cubic meters.

With 200-300 million cubic meters of shale gas extraction, at least 1.5 bcm of gas coming from Qatar through the LNG terminal in the coastal town of Swinoujscie and Poland’s extraction of conventional gas increasing to 5-6 bcm from the current 4 bcm, Poland would cover nearly half of its demand for gas from non-Russian sources, the daily writes.

Source: The Warsaw Voice

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Oct 27

 

Poland will get an additional incentive to push forward with shale gas projects if Russia’s Gazprom refuses to lower multi-year gas prices, Deputy Prime Minister Waldemar Pawlak said on Wednesday.

Polish gas monopoly PGNiG said it would seek an agreement with Gazprom by end-October on a price cut under their long-term deal and, if unsuccessful, would then turn to an arbitrage court.

“Some activity on the government level would certainly do no harm to signal our expectations,” Pawlak, who also serves as the energy minister, told Reuters.

Poland imports some two-thirds of its annual gas consumption of 14 billion cubic metres from Russia, and diversification of supplies has for long been high on Warsaw’s agenda, with its focus lately turning to potential shale gas exploration.

“Our agreement runs until 2022, and by then with relatively good technical capabilities, there will be a chance to match demand with shale gas supply, and this is a new element in the discussion. We can either buy cheaper conventional gas or move quicker on shale gas extraction,” Pawlak said.

Poland hopes to start shale gas production as soon as in 2014 after a study by the U.S. Energy Information Administration estimated it could have some 5.3 trillion cubic metres of recoverable reserves, though that has not been confirmed so far.

The government granted over 100 exploration licences, and three companies recently said they had hit some shale gas deposits.

Source: Reuters

 

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Oct 18

 

Waldemar Pawlak, expected to be Poland’s deputy prime minister in the new ruling coalition, believes that investors should not be overly anxious over the EU’s complaint that Poland must register all chemicals used in the extraction of shale gas.

“If these substances are already being used and are not doing any harm [to the environment] in Canada or America, I don’t imagine they are going to do particular harm to the European environment, rather we should expect a similar effect,” Pawlak, who was also economy minister in the previous ruling coalition before the 9 October elections, has said.

“So it is not worth getting hysterical about it and exaggerating the matter,” he added.

Yesterday, the European Commission clarified that chemicals intended for use in the extraction of shale gas must be described as such in the European Chemicals Agency (ECHA), a stipulation that has not been followed by Polish firms to date.

The stipulation about registration of chemicals came into force in 2008, and a prerequisite for suppliers is that they must clearly state the intended purpose of the chemicals.

In the case of shale gas extraction, the chemicals will be used for “fracking”, namely breaking up rocks to obtain gas below the earth’s surface.

The EC press department has further specified that suppliers who have not registered their products correctly will be obliged to submit a case study that explores whether or not the chemicals will have a detrimental effect on the environment.

Poland has high hopes that tapping its shale gas resources will make it increasingly independent in the energy sector. However, although it initially supported blanket EU regulations governing the extraction, Poland has now begun to lobby against further laws.

A debate in the European Parliament earlier this month saw vehement opposition to the extraction of shale gas from the Committee on the Environment, Public Health and Food Safety (ENVI). However, the EC does not endorse the opinion of the parliamentary committee.

Meanwhile, the EU has announced that is collecting its own specialist reports on the matter, and may outline regulations on shale gas extraction next year.

Poland will oppose such regulations, as underlined in a report circulated earlier this month by the Polish Institute of International Affairs.

“Because of the complexity and breadth of this debate, it seems unfeasible to consider introducing a comprehensive legal or regulatory framework [on shale gas] within the EU,” the report claims.

Source: thenewspl.com

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Oct 14

 

San Leon Energy has announced it has spudded the second of its two wells in the Nida concession in southern Poland.

The Belvedere 1 exploration well is planned to reach a total depth of 1000 metres using the Jaslo DIR700 rig.

It will test multiple targets on trend with the Plowowice and Grobla oil fields, the company said in a statement on Wednesday.

Prospects at the concession, which is 100% owned by the company, were previously estimated at between 1 million and 2 million barrels.

Late last month the first exploration well at the concession, Chopin 1, came up dry and the company was forced to abandon the well.

Oil and gas exploration group San Leon Energy is focused on projects in Europe and North Africa. Headquartered in Dublin, the company has offices in London, Warsaw, Italy and Denver.

Shares in the company were trading up 18% at £0.15 on London’s Alternative Investments Market on Wednesday.

Source: Upstreamonline.com

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Oct 06

 

A European Parliament (EP) committee is winding up a debate this week on possible EU-wide legislation on shale gas – a move opposed by a recent report by the Polish Institute of International Affairs.

Poland – which could be sitting on Europe’s largest deposit of shale gas – has been moving away from backing a EU-wide strategy on the energy source.

The Polish Institute of International Affairs report, presented at the EP’s energy committee this week, concludes that, “because of the complexity and breadth of this debate, it seems infeasible to consider introducing a comprehensive legal or regulatory framework [on shale gas] within the EU”.

Polish MEP (Civic Platform) Lena Kolarska-Bobinska told Polish Radio that shale gas is a huge opportunity for Poland to become more energy independent.

“Above all, it’s important for us that shale gas is treated as an alternative source of energy, as a real opportunity, and not as a fantasy,” she said.

Test drilling involving Poland’s state gas company and multinationals for shale gas deposits began this summer.

France, however, has been leading the campaign against shale gas ‘fracking’ – the process by which the gas is extracted from rock – and has revoked three production licences in the south of the country in fear that the process is environmentally dangerous.

Jose Bove, the radical French Green MEP who briefly made international news in the 1990s by bulldozing a McDonald’s outlet, is leading the bid to gather signatures in the European Parliament calling for a ban on fracking.

“We have a lot of scientific information about how the hydraulic fracturing method, namely the application of water with chemicals into rocks, will have a negative effect on the environment,” Bove claimed in an interview with Polish Radio.

However, to date, Bove has managed to gather less than 100 MEPs’ signatures, well below the majority needed to push through the petition.

Regardless of this week’s debate, the EU has already announced that it is collecting its own specialist reports on the matter, and next year it will outline its proposed regulations on shale gas extraction.

Source: thenews.pl

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Sep 29

 

A U.S. official says America and Poland should cooperate more on the use of Poland’s shale gas resources and a nuclear power project.

U.S. Deputy Secretary of Energy Daniel Poneman on Wednesday also said Poland’s desire to diversify its energy resources will benefit all of Europe. Warsaw is moving to reduce its dependence on Russian oil and gas.

Poland’s shale gas resources are believed to be Europe’s largest, but still need a viability assessment. Extracting the natural gas from shale rock requires costly technology.

The U.S. and Poland also are cooperating on plans to build Poland’s first nuclear power plant, expected after 2022.

Poneman spoke at a meeting about future energy needs. He stressed the importance of environmentally friendly technologies.

Source: Business Week

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Sep 28

 

Any attempt by the European Union to limit the exploitation of shale gas in Poland would likely be vetoed by the government, a Polish Foreign Ministry official told the European Unconventional Gas Summit on Wednesday.

“Quite possibly we are going to veto any interference in our country’s energy independence,” Reuters reported Maciej Olex-Szczytowski as saying.

Mr Olex-Szczytowski was referring to the possibility of regulation that would restrict the exploitation of shale gas across the Europe Union.

But just last week Marlene Holzner, a spokesperson for EU Energy Commissioner Günther Oettinger, said the European Commission is not planning to propose any new legislation regarding shale gas, Dow Jones Newswires reported. The EC is currently considering whether EU environmental laws should cover shale gas.

“At the moment, it is not foreseen that we come forward with a legislative proposal,” Ms Holzner said.

Source: Warsaw Business Journal

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Sep 07

 

Poland’s gas monopoly PGNiG has seen some gas flows from one of its shale gas licences in northern Poland, PGNiG deputy head Miroslaw Szkaluba told Reuters on Wednesday.

Szkaluba said PGNiG, which holds most of the unconventional natural gas exploration licenses in Poland, is in talks with Chevron and Marathon over potential partnership in licenses.

“Last week, we finished the fracturing process and on Saturday we recorded gas flows. We know it is there and is very pure,” Szkaluba told Reuters.

“We are talking to foreign partners like Chevron and Marathon about diversifying exploration risk, which could be made through a swap in licence stakes.”

PGNiG will carry out two more test drills at the site and will be in a better position to evaluate profitability of the field in 2012, he added.

Polish media has speculated that large scale production from shale gas could start in five years, earlier than expected.

According to a recent study by the U.S. Energy Information Administration, Poland’s technically recoverable reserves of shale gas are the biggest in Europe at an estimated 5.3 trillion cubic metres.

Source: Reuters

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Aug 30

 

3Legs Resources Plc has announced the completion of 13-stage hydraulic fracture stimulation programme on Lebien LE-2H horizontal well.

The company said that the frac programme was executed using the ‘plug and perf’ method and was carried out in full compliance with all applicable health, safety and environmental requirements.

3Legs said that the well is now being prepared for testing, which may include flaring of natural gas.

The company stated that the hydraulic fracture treatment on the Lebien LE-2H well is believed to be the first multi-stage hydraulic frac stimulation of a horizontal shale gas well in Poland and consequently represents a further milestone in the evaluation of the hydrocarbon potential of the lower Palaeozoic shales in the Polish Baltic Basin.

Operations are continuing on the Warblino LE-1H horizontal well and an announcement relating to this well is expected to be made shortly.

Peter Clutterbuck, Chief Executive of 3Legs Resources, said:

“We are pleased to have successfully completed the multi-stage hydraulic fracture treatment of the Lebien LE-2H well as planned.  This was, to the best of our knowledge, the first multi-stage hydraulic fracture treatment of a horizontal shale gas well in Poland.

We look forward to the results of the well test programme later this year.  The results of this well have the potential to advance significantly our understanding of the shale gas potential of the lower Palaeozoic shales in the Polish Baltic Basin.”

Source: Natural Gas for Europe

 

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