San Leon refocuses with partnerships on Polish shale – Natural Gas Daily – Interfax Global Energy

Shale gas hopeful San Leon Energy said on Thursday it had opted to leave Germany and Slovakia, while confirming it had reduced its portfolio of Polish shale gas assets by 14% as part of a company optimisation programme.

The company said in a posting it had partly or fully relinquished nine concessions in Poland. However, it added that progress is being made on its remaining operations – including the implementation of a new three-well drilling programme in the Karpaty area of the Permian Basin.

A drilling rig has been secured from local services company Exalo and San Leon plans to spud its first well at the site in mid-September.

“Planning is also under way for our next Gdansk West well at Lewino. Initial results of the Conoco/3Legs and BNK horizontal wells appear positive and further results are expected soon,” said San Leon Chairman Oisín Fanning in an operational update.

Meanwhile, operations at the Rawicz field – now being co-developed with Palomar Natural Resources, which is led by former San Leon staffer John Buggenhagen – is moving forward with plans to spud a well at the site in Q4 2014.

San Leon claims the Rawicz field contains approximately 1.2 billion cubic metres of conventional gas, which Fanning recently told Interfax translates to “about $150 million in value”.

According to the Polish Geological Institute, Poland has up to 1.9 trillion cubic metres of accessible shale gas in its territory. More than 100 concessions have so far been issued, but a report from the country’s National Audit Office earlier this year criticised the government for bureaucratic failings that are holding back a potential start-up of production.

via San Leon refocuses with partnerships on Polish shale – Natural Gas Daily – Interfax Global Energy.