30 August 2013 09:56 [Source: ICIS news]
LONDON (ICIS)--The failure of a Polish shale gas test well to show deposits in commercial volumes shows investors need to modify their expectations on the potential of Poland’s unconventional gas reserves, an investment bank said on Friday.
In a note to investors on the Syczyn test well – a well in the Lublin Basin of southeastern Poland that has been drilled and horizontally fractured, or “fracked”, by Polish oil and petrochemicals group PKN Orlen – Roberty Rethy, an analyst at Prague-based investment bank WOOD & Company, assessed the disappointing data.
“While not entirely unexpected or surprising, this is still not good news and proves that shale gas exploration efforts are at a very early stage in Poland and expectations need to be moderated,” Rethy said.
“Orlen’s unconventional capital programme, while not entirely unreasonable, remains a risk for shareholders, in our view,” he added.
The Syczyn shale gas data was currently being analysed and interpreted by Orlen, which said it was preparing to start its second horizontal fracking of a test well, also located in the Lublin Basin.
On 28 August, Lane Energy Poland confirmed it was extracting 8,000 cubic metres of shale gas per day from its Lebien 2H trial well in the Baltic Basin, northern Poland, making it the best performing shale gas test well in Europe to date.
The news cheered Polish ministers who remain committed to exploration policies they say could make Poland a big shale gas player despite unconventional gas projects in Poland suffering from pullouts by US energy major ExxonMobil, Canada’s Talisman Energy and US company Marathon Oil.
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