26th Nov 2013 10:28
LONDON (Alliance News) - 3Legs Resources PLC Tuesday said it has agreed with US oil major ConocoPhillips to drill, stimulate and test a long lateral well in the Sasino shale horizon in Poland after detailed studies of the site.
The AIM-listed oil and gas exploration and development company said it has now agreed to a three-well 2013/14 programme to commence in the fourth quarter with two vertical pilot wells to determine the optimum placement for the lateral well for fracking.
The company said the programme will culminate with a long lateral well, completed with a multi-stage stimulation and tested, over the second or third quarter 2014.
3Legs said the cost of the committed work programme is roughly USD63 million, with USD19 million from 3Legs. The company said it anticipates a cash position of roughly GBP17 million at the end of its third quarter.
Both companies said they maintain focused on operations in the Western Baltic Basin and onshore Poland despite questions over the effect of EU regulation and recent lower revisions of shale reserves by the Polish government.
Exxon Mobil Corp. has already decided to abandon its Polish shale operations, although other global players such as Chevron Corp. remain determined to extract shale gas in Poland.
3legs Resources shares were down 2.6% to 23.25 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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