19 April 2012 17:53 [Source: ICIS news]
LONDON (ICIS)--A Polish Geological Institute (PGI) estimate that shows a break-even price for shale gas in Poland could be much higher than in the US and may weaken the outlook for exploiting gas deposits in the country, investment bank Wood & Company said on Thursday.
The bank responded to analysis from the institute which noted that the break-even price for shale gas in ?xml:namespace>
“While we believe it is too early to talk about shale gas economics in Poland, particularly in light of the unknown fiscal regime [that will apply], this may be yet another comment that could cool down some overly positive expectations regarding Polish shale gas prospects,” said Robert Rethy, a Wood & Company analyst.
The cost of drilling a shale gas well in
European shale basins also tend to be smaller and more “tectonically deformed” than in the
In March, Wood & Company said the financial markets were not yet able to reliably assess the value of Poland's shale gas reserves, following a PGI assessment that the country’s recoverable shale gas reserves were most likely between 0.35 trillion cubic metres (Tm³) and 0.77 Tm³. It said that this is only around one-tenth the 5.3 Tm³ estimated in April last year by the US Energy Information Administration.
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